Psagot Investment House Ltd. CEO Roy Vermus today responded to charges of price manipulation of securities by executives at the firm's portfolio management subsidiary Psagot Securities Ltd.
In a letter to Psagot employees, Vermus wrote, "Yesterday evening, the media reported that two former Psagot employees David Edery, a former VP of brokerage services, and Shay Ben-David, a former trading room manager, are suspected of violations of the Securities Law. David and Shay terminated their employment at the company following a decision the company made several months ago to close the nostro activity. (These are activities made by a TASE member firm on its own behalf.)
"The reason for the decision was the company's strategic concept that, in order to loyally fulfill our commitments to our clients and customers, we should focus on asset management for clients. This decision naturally has nothing to do with the suspicions reported.
"According to the reports, the suspicions relate to the company's nostro money, and do not affect clients' money in mutual and provident funds or in portfolios managed by Psagot.
"Psagot, which has inscribed on its flag the values of professionalism, credibility, and responsibility to its clients and customers, has demonstrated over the years that the management of other people's money does not end with investment management, cautious and responsible risk management, and the creation of good investment returns over time, but also inherently includes the responsibility to protect investors' money."
Published by Globes [online], Israel business news - www.globes-online.com - on February 2, 2010
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