In Romania, the outbreak of World War II saw the generalization of antisemitic laws, followed in 1940 the ascendancy of hardliner Ion Gigurtu. As reported by Sebastian, news of his ascendancy struck his "millionaire friends" Blank and A. L. Zissu, who were "terrified and cracking up", but who still pestered him with "abstract conversations." Such radicalization was followed in September by Carol's ouster, and afterward by the establishment of an Iron Guard-led "National Legionary State". This new regime blocked all of Blank's Romanian assets in October 1940, and instituted a special commission for re-litigating the BMB affair. This body resumed work after the Iron Guard's ouster in early 1941, and determined that Blank owed the Romanian state 600 million lei. Frequenting the left-wing journalist Tudor Teodorescu-Braniște in April 1941, Blank expressed confidence that Germany would lose in its war with Yugoslavia. Both he and his host resigned themselves by June, when Blank also circulated rumors about Romania's imminent participation in the invasion of Soviet territory. He still owned a paper mill, which was ordered to prepare for distribution in Bessarabia. According to Sebastian, Blank argued in late 1941 that the war would only last for two more years, but was then "disgusted at the British lack of seriousness in Libya."