Bloomberg News

Korea Seeks Former Deutsche Bank Trader Probe, Asia Economy Says

September 28, 2011

Sept. 28 (Bloomberg) -- South Korea’s financial regulator asked prosecutors to investigate a former trader at Deutsche Bank AG’s Hong Kong branch for manipulating prices of a derivative-linked stock, Asia Economy Daily reported.

The former employee at the German lender made a profit of 4.5 billion won ($3.9 million) from illicit activities, according to the Korean-language report, citing a Securities and Futures Commission decision. Deutsche Bank spokesman Michael West said he wasn’t aware of the statement on the company.

The Securities and Futures Commission requested prosecutors probe a former trader at a foreign bank’s Hong Kong branch for price manipulation on equity-linked securities derivatives, according to Financial Supervisory Service’s e-mailed statement today, which didn’t identify the former employee or bank.

FSS spokeswoman Kim Soo Mi declined to elaborate on the investigated, citing the regulator policy.

The Asia Economy Daily report follows indictments of four of Deutsche Bank employees and the Frankfurt-based bank’s South Korean brokerage unit last month in a separate case of market manipulation, which caused a stock market rout on Nov. 11.

--Editors: James Gunsalus, Linus Chua

To contact the reporter on this story: Seonjin Cha in Seoul at scha2@bloomberg.net Saeromi Shin in Seoul at sshin15@bloomberg.net

To contact the editors responsible for this story: Darren Boey at dboey@bloomberg.net Chitra Somayaji at csomayaji@bloomberg.net


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