FX.co ★ Deutsche Bank Found Guilty for Price Crash in South Korea

Four Deutsche Bank employees from its South Korea brokerage were charged for illegal securities trading resulted in a rout in stocks at the South Korea exchange house on 11 November 2010, says BBC News.
The South Korean government came to a conclusion that due to abusive financial practices the Deutsche Bank employees have gained illegal profit of 45 bln won (USD 41.5 mln). The Bank denies the accusations in illegality of its employees’ actions, Bloomberg reports.
The investigation against the DB’s South Korea unit was initiated this February. The government suspended the Bank’s activities on the local market. The Bank was banned from trading securities for six months, the penalty imposed by regulatory authorities on April 1. Moreover, the Deutsche Bank was sentenced to a fine of one bln won.
Until 10 minutes before the Seoul market closed on 11 November 2010 the Kospi index dropped 28 points equal to 2.7 percent decrease. Previously on that day foreign investors placed orders to sell the securities for USD 2.6 bln, most of them were processed by the DB’s South Korea unit.