China Sentences Ex-chairman Of Bank To Death For Making Illegal Gains Of Over $100M

at 29-12-2019 07:57AM (2 months ago)

(24248 | Addicted Hero) (m)


The former chairman of struggling lender Hengfeng Bank Co. has been sentenced to death with a two-year reprieve by a Chinese court for making illegal gains of over $100 million.

Jiang Xiyun was convicted for moving 754 million yuan ($108 million) worth of Hangfeng shares to his personal account between 2008 and 2013, according to the Yantai Intermediate People’s Court. He also took bribes of more than 60 million yuan together with another bank executive, according to the Thursday ruling. A reprieved death sentence may be commuted to a life sentence if the person shows good behavior within the allotted period.

The conclusion of the trial underscores the troubles faced by Shandong-based Hengfeng Bank, which earlier this month became the latest regional lender in need of a rescue. The bank sold new shares for about $14 billion to a group of investors including a unit of China’s sovereign wealth fund and a local government-backed asset management firm.

Jiang had ordered others to destroy records for over 600 million yuan of transactions, according to Thursday’s ruling.

China’s banking regulator said in June that the Shandong government was speeding up the restructuring of Hengfeng, a mid-sized bank that has failed to disclose its financial statements for two straight years. The lender had 1.2 trillion yuan of assets at the end of 2016, according to its most recent annual report.

China’s policy makers have stepped up efforts to restore confidence in its struggling banking system and its smaller lenders, a key source of credit to small and medium-sized companies. The sector has been particularly strained after the government shocked the market by taking over Baoshang Bank Co. in late May, the first bank seizure in more than 20 years.

Two months later, regulators took a different approach by having three state-owned financial heavyweights buy stakes in Bank of Jinzhou Co.



Osahenogae1 at 29-12-2019 10:05AM (2 months ago)
(1197 | Gistmaniac) (m)

I LOVE THAT! MAY GOD CONTINUE TO BLESS CHINA! NOT LIKE THE FRAUDULENT NIGERIA!
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eussiff at 29-12-2019 11:43AM (2 months ago)
(14 | Newbie) (m)

Nice one not like the country where the corrupts are making the law to favour them
Reply
crusita at 29-12-2019 11:54AM (2 months ago)
(581 | Upcoming) (f)

This can never  happened in so call country nigeria.
Reply
Wazubia at 29-12-2019 01:01PM (2 months ago)
(5576 | Gistmaniac) (m)

GOOD 1, CHINESE ARE HIGHLY CORRUPT.
Reply
james987 at 29-12-2019 01:02PM (2 months ago)
(8653 | Hero) (m)

They blocked borders,they said china did same many years ago. Can they do this now?Time to copy china
Reply
Larsson4 at 29-12-2019 02:22PM (2 months ago)
(6 | Newbie) (m)

Good for him
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