Tal asks several banks to examine possible embezzlement at branches - TheStreet

Supervisor of Banks Yitzhak Tal said that the critical mass of the embezzlement at Trade Bank was carried out in the last 12 months. Tal was speaking at a conference on the commercial banking system at Tel Aviv University.

The Bank of Israel estimates that Esther Alon, who served as assistant manager at the Tel Aviv branch of Trade Bank, embezzled NIS 170 million to NIS 200 million from the bank.

Tal said that at this stage the Banking Supervision division hasn't completed examining the extent of damages at the bank, and it is possible the examination will continue several months. Tal said it would be irresponsible at this stage to talk about the persons responsible for the affair, or about those who are to blame, before the chain of events is clear.

The supervisor said that one of the first questions he intends to examine has to do with deposit insurance. He added that Bank of Israel should also draw conclusions.

Tal said that following the embezzlement at the Trade Bank, the division asked other banks to conduct an examination of possibly similar embezzlements at their branches.

The court last week approved receivership for Trade Bank.


* State likely to cover only some Trade Bank client losses
* Police link Trade Bank fraud to organized crime
* Political appointee at Industrial Development Bank