ID :
209391
Mon, 09/26/2011 - 10:17
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https://oananews.org//node/209391
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Prosecutors interrogate executives of suspended savings banks
SEOUL, Sept. 26 (Yonhap) -- Prosecutors quizzed on Monday executives of seven savings banks suspended earlier this month due to capital shortages in order to determine whether illegal business practices caused the suspensions.
The executives from the seven suspended savings banks, including major players Jeil and Tomato Savings Bank, were questioned by a special investigation team of prosecutors and officials from the financial watchdog, prosecutors said.
The interrogation is mainly focused on determining whether the troubled banks illegally lent to unqualified borrowers, including the banks' major shareholders, and issued loans to unprofitable projects, according to the prosecutors.
Allegations of executives' embezzlement of company funds and accounting irregularities are also being investigated, they said.
"The interrogation is to find out whether the management or major shareholders are responsible (for any wrongdoing) and is focused on locating any illegal loan issuance," a prosecution official said.
The questioning came after prosecutors raided the head offices of the suspended banks and their major shareholders' homes last week in search of evidence supporting the allegations of illegal loan issuances and unprofitable investments.
The financial regulator suspended the seven saving banks from operations on Sept. 18 due to their capital shortages and potential deposit losses.
A massive amount of taxpayer money is expected to be funneled into propping up the troubled banks, while many people have been forced to give up part of their deposits due to the suspensions.
Following the interrogation, the investigation team plans to summon executives and major shareholders suspected of wrongdoing during this week, the prosecutors said.
The executives from the seven suspended savings banks, including major players Jeil and Tomato Savings Bank, were questioned by a special investigation team of prosecutors and officials from the financial watchdog, prosecutors said.
The interrogation is mainly focused on determining whether the troubled banks illegally lent to unqualified borrowers, including the banks' major shareholders, and issued loans to unprofitable projects, according to the prosecutors.
Allegations of executives' embezzlement of company funds and accounting irregularities are also being investigated, they said.
"The interrogation is to find out whether the management or major shareholders are responsible (for any wrongdoing) and is focused on locating any illegal loan issuance," a prosecution official said.
The questioning came after prosecutors raided the head offices of the suspended banks and their major shareholders' homes last week in search of evidence supporting the allegations of illegal loan issuances and unprofitable investments.
The financial regulator suspended the seven saving banks from operations on Sept. 18 due to their capital shortages and potential deposit losses.
A massive amount of taxpayer money is expected to be funneled into propping up the troubled banks, while many people have been forced to give up part of their deposits due to the suspensions.
Following the interrogation, the investigation team plans to summon executives and major shareholders suspected of wrongdoing during this week, the prosecutors said.
