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Embezzlement uncovered at Swiss branch of Bank Leumi

Bank promises that neither it nor its clients will suffer

By Sami Perez

The Zurich branch of Bank Leumi has uncovered massive embezzlement, apparently of between $15 million to $20 million in a case concerning several accounts held by bank customers.

A bank worker apparently made a number of derivative deals leading to significant losses in the clients' accounts. The worker was fired immediately the deals were discovered.

Bank Leumi said yesterday the case concerned a small number of customers. Leumi stressed the bank's clients would not suffer losses, and neither apparently will the bank. Leumi is insured against such incidents.

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Bank Leumi has made a full report to the Swiss and Israeli bank supervisory authorities. Bank Leumi le-Israel (Switzerland) manages assets of 7 billion Swiss francs.