ID :
208996
Fri, 09/23/2011 - 08:56
Auther :
Shortlink :
https://oananews.org//node/208996
The shortlink copeid
Prosecutors raid 7 newly suspended savings banks
(ATTN: ADDS more details, bank executive's death in paras 3-8)
SEOUL (Yonhap) - Prosecutors on Friday raided seven savings banks whose operations were suspended last week due to large debts and insufficient capital in search of evidence to possible irregularities by the executives and large shareholders of the banks.
Scores of prosecutors and police investigators searched head offices of the seven banks and the homes of their executives and major shareholders simultaneously for hours from 10 a.m. for evidence supporting allegations that they misappropriated company funds.
Among the confiscated materials from the raid were accounting books, transaction statements and computer hard disks, believed to contain information on the bank executives' illegal lending or shady transactions.
"We are focusing on confiscating materials on excessive loan extension, improper lending to shareholders and unhealthy loans, which the banks were accused of issuing," one investigation official said.
After studying them, the executives and shareholders will be summoned for interrogation, according to prosecutors.
Meanwhile, the head of Jeil II Savings Bank, one of the banks suspended last week, was found dead around noon apparently after jumping off the firm's headquarters in central Seoul amid escalating pressure stemming from the prosecution raids.
Police said, "He seemed to have killed himself by jumping and the exact cause of the death is being examined."
The country's financial regulator halted operations of the seven troubled banks, including major players Jeil, an affiliate of Jeil II, and Tomato, last weekend after an industry-wide asset stress test revealed a dearth of capital at the banks.
The suspensions led to massive deposit withdrawals and protests by depositors concerned with potential savings losses.
The raid came one day after the prosecution and other financial market authorities teamed up to launch a special investigation of the widening savings bank turmoil.
About a dozen other savings banks were suspended in the first half of 2011 due to their capital shortages and deposit losses, driven by bank heads' and major shareholders' reckless investment decisions.
Several heads and large shareholders of the savings banks suspended in early 2011 were convicted of embezzlement and breach of duty by causing massive losses for the lenders.
SEOUL (Yonhap) - Prosecutors on Friday raided seven savings banks whose operations were suspended last week due to large debts and insufficient capital in search of evidence to possible irregularities by the executives and large shareholders of the banks.
Scores of prosecutors and police investigators searched head offices of the seven banks and the homes of their executives and major shareholders simultaneously for hours from 10 a.m. for evidence supporting allegations that they misappropriated company funds.
Among the confiscated materials from the raid were accounting books, transaction statements and computer hard disks, believed to contain information on the bank executives' illegal lending or shady transactions.
"We are focusing on confiscating materials on excessive loan extension, improper lending to shareholders and unhealthy loans, which the banks were accused of issuing," one investigation official said.
After studying them, the executives and shareholders will be summoned for interrogation, according to prosecutors.
Meanwhile, the head of Jeil II Savings Bank, one of the banks suspended last week, was found dead around noon apparently after jumping off the firm's headquarters in central Seoul amid escalating pressure stemming from the prosecution raids.
Police said, "He seemed to have killed himself by jumping and the exact cause of the death is being examined."
The country's financial regulator halted operations of the seven troubled banks, including major players Jeil, an affiliate of Jeil II, and Tomato, last weekend after an industry-wide asset stress test revealed a dearth of capital at the banks.
The suspensions led to massive deposit withdrawals and protests by depositors concerned with potential savings losses.
The raid came one day after the prosecution and other financial market authorities teamed up to launch a special investigation of the widening savings bank turmoil.
About a dozen other savings banks were suspended in the first half of 2011 due to their capital shortages and deposit losses, driven by bank heads' and major shareholders' reckless investment decisions.
Several heads and large shareholders of the savings banks suspended in early 2011 were convicted of embezzlement and breach of duty by causing massive losses for the lenders.
