NIS 100m fine for Psagot mooted - then dropped

Securities Authority chairman Zohar Goshen made the offer in order to close the case in official talks with Psagot's attorney Adv. Dori Klagsbald.

A NIS 100 million fine was mooted for Psagot Investment House Ltd. over its alleged bond running scheme, but no talks are now underway between the parties on this point. Israel Securities Authority chairman Zohar Goshen made the offer in order to close the case in official talks with Psagot's attorney Adv. Dori Klagsbald.

Sources inform ''Globes'' that, in these talks, Klagbald sought clarifications following suspicions that Psagot CEO Roy Vermus and chairman Arik Steinberg were involved in the affair. Former Psagot executives David Edery and Shay Ben-David, who were responsible for the investment house's nostro portfolio, were arrested in February on suspicion of manipulating prices of government and corporate bonds in order to reap nostro profits. They may also have been motivated for personal gain, as their salaries were based in part of the nostro portfolio's performance.

Sources close to the case said that Goshen told Klagsbald that he lacked the authority to authorize the fine and to decide to file an indictment in the case, and that the consent of the State Prosecutor and even the Attorney General would be needed. Although the talks with Klagbald continued, the issue never went further.

The Securities Authority declined to comment on the matter. Psagot denied that the Securities Authority suggested that it pay a fine to close the case.

Published by Globes [online], Israel business news - www.globes-online.com - on May 25, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

5 Comments
View comments in rows
Update by email about comments talkback
POST
Comments
Your name
Please insert your name
Content
Hyperlink in a new window Hyperlink Right Left underline italic bold Bulleted List Ordered List Face1 Face2 Face3 Face4 Face5 Face6
Your comment

Thanks
You comment was recieved and soon will be published.
In posting comments, I agree to abide by the Terms of Use
Globes encourages lively and frank debate, but posts that the editors consider merely abusive or otherwise inappropriate will be removed. Report inappropriate content
Thank you for posting your comment, which will be reviewed for publication.
Loading Comments...load
Load more comments
TASE TASE must ease regulations

A media campaign urging Israelis to invest in shares cannot solve the TASE's problems, argues Amir Bramly.

Twitter Facebook Linkedin RSS Newsletters