"We'll check if there were reasons that we are unaware of as to why Discount Bank's controlling shareholders want to fire Shlomo Zohar," Supervisor of Banks Rony Hizkiyahu told the Knesset Finance Committee today, in his first public comment on the effort to oust Israel Discount Bank's (TASE: DSCT) chairman.
The Finance Committee is discussing Basel II - The New Basel Capital Accord of the Basel Committee on Banking Supervision. Finance Committee chairman MK Moshe Gafni (United Torah Judaism) asked Hizkiyahu to comment on the controversy at Discount Bank.
Hizkiyahu said that the Banking Supervision Division had summoned the controlling shareholders for a meeting, and that it would also meet other shareholders, including State of Israel Properties (MI Holdings) to try to find out the reasons for Zohar's ouster. He added that the controlling shareholders deny that they sought Zohar's removal last Friday, close to the beginning of the Sabbath, but that it had happened long before.
"We examine every instance of departure that is not part of the regular timetable," said Hizkiyahu. "There are other controlling shareholders here who have expressed this or that position. It's necessary to thoroughly examine the matter. We've summoned the controlling shareholders for a meeting, and we're talking with the bank, and inviting people from the bank for a meeting. We don’t want disputes between the shareholders to hurt the bank. We also need to examine whether everything is proper, and that there won't be disputes between controlling shareholders over matters that we are unaware of, because the bank's stability is important to us."
Hizkiyahu concluded, "Our goal is the stability of the bank."
Discount Bank's share rose 2.9% by midday to NIS 7.20.
Published by Globes [online], Israel business news - www.globes-online.com - on November 4, 2009
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