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September 19, 2005

Delta Asia Run Wanes

Banco Delta Asia SARL appears to have weathered the storm over its money-laundering activities, at least for the moment, with the press reporting this morning that no further outflow of deposits has been seen, and even that some moneys are returning.

From today's SCMP:

Stanley Au Chong-kit, chairman of the Delta Asia Financial Group, visited the Lisboa branch at 2pm, shaking hands with each staff member and greeting customers.

"Their six-party talks [on North Korea's nuclear programme] failed, so they vented their frustration at me," Mr Au joked with one customer, referring to the US claims.

Customer confidence had been restored, said Mr Au, who added that "several tens of million dollars" had been redeposited with the bank. "I believe the bank run has come to an end," he said.

However, the bank will still be run temporarily by two administrators appointed by the Macau MA, and faces being cut off from its correspondent banking relationships if the US can prove its case.

In addition, the HKMA has placed the bank's Hong Kong subsidiary, deposit-taking company Delta Asia Credit, under the control of a supervisory manager from KPMG.

Posted by The Banker at September 19, 2005 11:57 AM

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