Deutsche Bank Korea appeals freeze order over stock manipulation
TRADE FINANCE, 14 July 2011
The South Korean of Deutsche Bank AG has appealed a Seoul court’s decision to freeze its assets over allegations that the company pocketed massive profits from illegal stock market trading late November.
The bank lodged the appeal last month in response to the Seoul Central District Court’s order to freeze 44.8 billion won or $42.3 million worth of deposits jointly held by the lender and Deutsche Securities Korea, its brokerage unit, court spokesman Gong Do-il said.
The sum, deposited at the bank’s Seoul branch and HSBC Bank Plc. here, is equivalent to the amount prosecutors estimate the foreign bank unit raked in through the alleged market manipulation.
The latest move came as prosecutors have looked into allegations that several employees made massive profits by placing hefty stock sell orders on the local market, triggering a sharp 2.7-percent plunge in the key stock index KOSPI on Nov. 11.
