Japan mulls action against Credit Lyonnais

Ulhas Joglekar ulhasj at bom4.vsnl.net.in
Sat Apr 22 18:32:35 PDT 2000


Saturday 22 April 2000

Japan mulls action against Credit Lyonnais TOKYO: Japanese regulators recommended disciplinary action on Friday against the Tokyo branch of Credit Lyonnais Securities Europe-Swiss AG, accusing the company of violations including inflating a customer's balance sheet. The Securities and Exchange Surveillance Commission submitted the recommendation to Japan's Financial Reconstruction Commission, alleging that the brokerage firm violated the law in three separate incidents. Officials at the company's office in Tokyo could not be reached after office hours on Friday for comment on the decision. In its ruling, the SESC said that Credit Lyonnais Securities illegally provided around 640,000 yen ($6,040) in property gains on February 1 to artificially boost a customer's profits. The commission also said the brokerage firm solicited a customer in January 1998 for a securities index futures transaction, promising profits that, in the event of an actual loss, would come from the brokerage firm's own accounts. The third incident, in September 1998, occurred when Credit Lyonnais deliberately falsified reports sent to a customer over a stock options transaction, the SESC said. (AP) For reprint rights: Times Syndication Service
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