Political fallout began to spread yesterday over the possibility that prominent banker David Li Kwok-po could face legal action by US securities regulators, with a call for Mr Li to step down from Executive Council meetings until the issue is resolved.
The call by Democratic Party vice-chairman Sin Chung-kai illustrated the potential embarrassment to the government if enforcement action is taken against the banking-sector legislator who was twice election campaign manager for Chief Executive Donald Tsang Yam-kuen.
Fears were also expressed within the government that the insider-trading allegations - over an apparent leak of information about a takeover bid by media mogul Rupert Murdoch for Dow Jones, of which Mr Li is a director - could damage Hong Kong's reputation as an international financial centre.
Mr Sin said that as any litigation might last for several months or a year, Mr Li should abstain from acting as an executive councillor.
'This would enable him to concentrate on the probe, and the credibility of the Executive Council would also be in no doubt,' he said.
The legislator also noted that it seemed the government had decided to side with Mr Li when Mr Tsang granted him Hong Kong's top honour, the Grand Bauhinia Medal, on July 1, almost two months after the allegations surfaced.
The Bank of East Asia chairman was Mr Tsang's campaign manager in 2005 and again this year, and serves on the boards of several listed companies and statutory bodies.
