Embezzlement uncovered at Swiss branch of Bank Leumi

Bank promises that neither it nor its clients will suffer
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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.

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.