There will be no trade in Trade (TASE: COBK ) shares this morning due to the NIS 250 million embezzlement revealed by Bank of Israel on Friday.
Bank of Israel said that Trade Bank assistant investment manager Esther Alon, embezzled NIS 200 million to NIS 250 million.
Bank of Israel Governor David Klein decided, withthe backing of the government, to appoint former anittrust commissioner attorney David Tadmor as interim manager. The appointment means the authority of Trade Bank's management and board is to be transferred to Tadmor.
On Saturday, Tadmor decided to temporarily close the bank, which has two branches. This is an irregular move, but Supervisor of Banks Yitzhak Tal noted that this is a specific occurrence in a small bank, which won't affect the stability of the banking system.
A Tel Aviv court on Saturday extended primary suspect Alon's detention through May 5. The court also extended the detention of other suspects, among them suspects from the gray market.
Trade Bank is controlled by the Weber and Irani families.