Second tycoon arrested amid bank run in Vietnam
HANOI — Vietnam arrested another top banker Thursday, state media said, widening a police probe into the communist country’s banking sector which has rattled markets and triggered a run on deposits.
The arrest of Ly Xuan Hai for “deliberate wrongdoing causing serious consequences” came just hours after the Asia Commercial Bank announced he had resigned from the position of director general, Thanh Nien online reported.
UPDATE 3-Vietnamese bank faces run after tycoon’s arrest
HANOI Aug 23 (Reuters) – A major Vietnamese bank founded by arrested tycoon Nguyen Duc Kien faced a run on deposits on Thursday, witnesses said, but the central bank has injected funds into the banking system and assured jittery residents their money is safe.
Monday’s arrest of Kien, 48, sent shockwaves through the Communist-run country, triggering a 9.2 percent slide in the stock market this week and causing depositors to pull funds from Asia Commercial Bank (ACB), one of Vietnam’s biggest lenders, which Kien helped found in 1994.