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To: Sergio R. Mejia who wrote (23391)	11/25/1998 3:44:00 AM
From: marcos	Respond to of 116830

Sergio - banco$ has a thread going on 'Euro Impact on Gold...' #Subject-22616 ... many good articles collected. Yes, it is generally ignored and it is significant, I agree. But that spells opportunity, imho.

To: Sergio R. Mejia who wrote (23391)	11/25/1998 9:39:00 AM
From: Alex	Respond to of 116830

Hundreds of depositors make run on Taiwan bank amid scandal Copyright © 1998 Nando Media Copyright © 1998 The Associated Press TAIPEI, Taiwan (November 25, 1998 07:45 a.m. EST nandotimes.com) -- A crisis engulfed one of Taiwan's banks Wednesday, as the chairman and other directors were fired on charges of making improper loans. The government appointed new supervisors and provided emergency cash to try to head off a run by depositors. Hundreds of people flooded branches of the Taichung Business Bank to withdraw their savings, and the Central Bank approved $270 million to help the bank pay panicked depositors. Taichung was accused of lending up to $227 million to six shaky investment and property companies that had suspected ties to the bank's chairman, Tseng Chen-jen, according to Vice Finance Minister Yen Ching-chang. Tseng was appointed as the bank's chairman Oct. 31 and approved the loans just days later, officials said. Under Taiwanese laws, the Finance Ministry can dismiss board members of troubled banks to protect people's savings. The Finance Ministry suggested that the courts prosecute Tseng for abusing his position of trust. Tseng is also the head of the Kuang Shan business conglomerate. The ministry ordered Central Deposit Insurance Co., which insures Taiwanese bank deposits, to supervise Taichung for six months. Finance Minister Paul Chiu said Taiwan's economy is still relatively sound and will be able to achieve the projected 5 percent growth if financial irregularities can be stopped quickly. In addition to the improper loans, Taichung, together with its affiliate Tai Yu Products Corp., failed to pay up to $123 million of stock purchases. The Bureau of Investigation said it is investigating whether the two companies used company funds to prop up their shares. The incidents sent shares into a tailspin on the Taiwan Stock Exchange, where blue chips fell 2.9 percent. Taichung is not one of Taiwan's largest banks, but its troubles made traders more nervous than previous problems at some conglomerates. Early this month, the government ordered seven companies to temporarily take their shares off the stock exchange after they got in trouble borrowing money to invest in stocks, then using the stocks as collateral to borrow and invest more. Also Wednesday, Ho Hsi-feng, head of the Kuo Yang group of construction firms, was arrested on charges of illegal stock deals. Prosecutors said Ho sold Kuo Yang group $185 million of cheap shares in exchange for more valuable shares held by the group. By ANNIE HUANG, Associated Press Writer