Vietnam arrests bank director as probe widens

By Chris Brummitt

Associated Press

Published: Thursday, Aug. 23 2012 9:30 p.m. MDT

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A security officer carries a bag of money into vault at the Asia Commercial Bank (ACB) Hanoi branch, Vietnam, on Thursday, Aug. 23, 2012. The head of the bank is cooperating with a police investigation and is no longer on the job, the institution's deputy director said Thursday, as jumpy customers withdrew funds following the arrest earlier this week of one of its founders.

Hau Dinh, Associated Press

Summary

Vietnam's state news agency is reporting that police have arrested the head of one of the country's largest banks as part of a widening probe into financial crimes that has spooked investors and depositors.

HANOI, Vietnam — Vietnam's state news agency is reporting that police have arrested the head of one of the country's largest banks as part of a widening probe into financial crimes that has spooked investors and depositors.

Asia Commercial Bank said it had halted lending as a result of the troubles at the bank, but that it was operating normally. On Thursday, it said that jumpy customers were withdrawing money from the institution.

The Vietnam News Agency reported Friday that ACB chief Ly Xuan Hai was arrested Thursday night for violating state regulations and "causing grave consequences."

On Monday, the bank's co-founder Nguyen Duc Kien was arrested on allegations of "illegal trading." The central bank said then that Kien's arrest was not related to activities at ACB.

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