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Six Local Banks to take over Taiwan Development & Trust
The government has ordered six major
banks to take over the financially troubled Taiwan Development
& Trust Corp., Vice Finance Minister Yen Ching-chang said
Tuesday.
Taiwan Cooperative Bank, First Commercial Bank, Land Bank of
Taiwan, Chang Hwa Commercial Bank, Hua Nan Commercial Bank and
the Bank of Taiwan, which currently hold a combined 47% stake in
Taiwan Development & Trust, agreed to form a new management
team to run the troubled firm after being briefed on its
financial situation.
Taiwan Development & Trust has suffered liquidity problems
and is under investigation for buying land for property
development at prices well above market levels. The six banks
will take over the investment bank's daily management after
consultations with Central Deposit Insurance Corp., which, under
government instruction, assumed the bank's operations early this
month.
The finance ministry will let the new management team decide how
to manage the troubled firm, including a sell-off of its money-losing
trust department.
Wednesday, May 24, 2000
Source: Taiwan Headlines
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