Financial Times

Bank CEO probed for insider dealing
Share transactions of a CEO of a top bank came in for scrutiny by the Securities and Exchange Commission, the stock market watchdog, for alleged insider dealing but the investigation has been dropped due to lack of evidence.

The transaction involved the executive's sale of his shares in his bank, acquired under a share option scheme, after its price had been driven up allegedly by purchases by another, closely related commercial bank in which the CEO is a director.

It was alleged the CEO had been privy to the decision by the other bank's board, of which he is a member, to acquire shares in his bank, apparently to prevent a predator from making a takeover bid. The SEC dropped the investigation after its inquiries revealed there wasn't enough evidence of insider dealing.

The transaction occurred during last year's bull run on the stock market in which most shares, especially banks, went up in value.

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