Yuanta employees post bail amid trading probe

Chairman Judy Tu was released on bail of NT$10 million (US$328,407) while former managing director Chang Lee-Chiou put up NT$7 million, the brokerage’s parent company, Yuanta Financial Holding Co., said Saturday in a statement to the Taiwan stock exchange. Wu Li-ming, senior vice president of the bonds division, paid bail of NT$2 million, the statement said.

Prosecutors raided Yuanta Securities offices on July 25 in a probe into the brokerage’s 2005 purchase of Yuanta Securities Investment Trust Co. and the trust’s structured notes, according to Saturday’s statement.

They allege Tu profited from interest arbitrage while leaving the brokerage to absorb losses from the trust’s investments in dollar-denominated interest-rate-linked structured bonds after the U.S. Federal Reserve raised rates, the Central News Agency reported Friday.

Yuanta Financial said all the transactions were conducted in accordance with regulations, and that it is fully cooperating with the investigation. Tu is the wife of Rudy Ma, founder of Yuanta Group.

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