Turkish authorities arrested Borsa Istanbul CEO Korkmaz Ergun on bribery charges, state-run Anadolu Agency reported Tuesday. The arrest is part of a widening investigation into Turkey’s investment fund crisis. Ergun was detained for questioning on Oct. 31 and removed from duty on Nov. 1, with Deputy CEO Atila Tureli named acting chief executive.
He is the most senior official arrested in the probe, which has expanded from fund managers and listed companies to politicians and high-level figures across Turkey’s financial institutions and regulators. The investigation centers on alleged manipulation in investment funds and stocks, following the September collapse of several funds that triggered steep losses in Turkish equities and affected nearly half a million investors. Yunus Arinci, CEO of Istanbul Takas ve Saklama Bankasi AS, resigned after being questioned by prosecutors.
Authorities also ordered the detention of four former Capital Markets Board officials, a banking-regulator official, and a Tera Holding executive.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing