The money will be paid in respect of alleged unauthorized operations by former senior employee Ernst Imfeld.
a target=new href=http://www.bankleumi.co.il/english/english.shtml>Bank Leumi (TASE:LUMI) today announced that Bank Leumi Switzerland has reached agreement with its insurers regarding its banking insurance policies. $60 million will paid immediately to Bank Leumi Switzerland in respect of damages caused by allegedly unauthorized operations by Ernst Imfeld, a former senior Bank Leumi Switzerland employee. As reported previously, Imfeld was fired as soon as suspicions about him arose in early 2001, and an indictment against him was filed.
The agreement between Bank Leumi Switzerland and the insurers also guarantees the former’s right to continue collecting more money from third parties, in addition to that paid by the insurers. If collected, some of these sums will be transferred to the insurers. The extent of further collection cannot be estimated.
The sums the insurers will pay to Bank Leumi Switzerland have until now not been included in the bank’s financial statements.
Bank Leumi Switzerland’s business and marketing prospered last year. The bank sold one billion Swiss francs of structured products to its customers and Swiss customers of other banks in the past year, and also recruited many new customers from all over the world.
Published by Globes [online] - www.globes.co.il - on February 2, 2003