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| Withdrawals hit Bank of East Asia | Withdrawals hit Bank of East Asia |
| (about 2 hours later) | |
| The Bank of East Asia has denied rumours that it is in financial trouble, after thousands of customers queued to withdraw their savings. | The Bank of East Asia has denied rumours that it is in financial trouble, after thousands of customers queued to withdraw their savings. |
| After weeks of global market turmoil, lines of people quickly formed outside the bank's branches in Hong Kong. | After weeks of global market turmoil, lines of people quickly formed outside the bank's branches in Hong Kong. |
| In a statement, the bank said the rumours were malicious and untruthful, and they had informed the police. | In a statement, the bank said the rumours were malicious and untruthful, and they had informed the police. |
| The speculation was believed to have been spread by mobile phone, and drove the bank's share price down by 11%. | The speculation was believed to have been spread by mobile phone, and drove the bank's share price down by 11%. |
| The rumours started earlier this week and customers descended on branches on Wednesday, despite bank staff handing out leaflets to the crowds denying that the bank was in financial difficulty. | The rumours started earlier this week and customers descended on branches on Wednesday, despite bank staff handing out leaflets to the crowds denying that the bank was in financial difficulty. |
| 'Sound and stable' | 'Sound and stable' |
| "The management of Bank of East Asia hereby states in the strongest possible terms that such rumours have no basis in fact" said the statement. | "The management of Bank of East Asia hereby states in the strongest possible terms that such rumours have no basis in fact" said the statement. |
| Traders and brokers, analysts and financial journalists, talk a lot - often with each other, even when they are not supposed to. The origins of financial rumour | Traders and brokers, analysts and financial journalists, talk a lot - often with each other, even when they are not supposed to. The origins of financial rumour |
| "The management further confirms that the bank's financial position is sound and stable," it added. | "The management further confirms that the bank's financial position is sound and stable," it added. |
| It also said that its total outstanding exposure to US bankrupt bank Lehman Brothers was HK$422.8m (£29m), and to US insurer AIG was HK$49.9m (£3.5m). | It also said that its total outstanding exposure to US bankrupt bank Lehman Brothers was HK$422.8m (£29m), and to US insurer AIG was HK$49.9m (£3.5m). |
| On Friday, Moody's Investors Service changed its outlook on the Hong Kong bank's credit rating from stable to negative, citing a recent insider trading case that exposed "lacklustre internal controls" at the bank. | On Friday, Moody's Investors Service changed its outlook on the Hong Kong bank's credit rating from stable to negative, citing a recent insider trading case that exposed "lacklustre internal controls" at the bank. |
| Last week, the bank revealed a trading loss of HK$93m (£6.5m) that it says was incurred by a rogue equity derivatives trader who "manipulated" valuations to hide losses. | Last week, the bank revealed a trading loss of HK$93m (£6.5m) that it says was incurred by a rogue equity derivatives trader who "manipulated" valuations to hide losses. |
| The discovery forced the bank to revise down its earnings for the first half of the year. | The discovery forced the bank to revise down its earnings for the first half of the year. |
| The Hong Kong Monetary Authority also dismissed the speculation and said the banking system as a whole was "safe and sound." | The Hong Kong Monetary Authority also dismissed the speculation and said the banking system as a whole was "safe and sound." |
| "I can confirm, categorically, that these rumours are unfounded," said Joseph Yam, the authority's chief executive. | "I can confirm, categorically, that these rumours are unfounded," said Joseph Yam, the authority's chief executive. |
| "It is a very sound bank", he added. | "It is a very sound bank", he added. |