Man arrested for spreading 'bank run' rumours on Web

Police have arrested a man suspected of circulating rumours online about a local financial institution and calling on people to withdraw their money from it.

On Wednesday, a bank run by thousands of jittery depositors emptied about HK$2 billion from the Bank of East Asia's vaults on rumours that it was in trouble.

Police would not reveal the name of the financial institution in the message linked to the man's arrest, but said it had nothing to do with the Bank of East Asia run.

Officers from the commercial crime bureau's technology division on Friday found a message in an internet forum alleging that a run would occur on a local financial institution. The suspect was arrested in Shau Kei Wan yesterday for using the computer with criminal or dishonest intent.

Police reminded the public that sending malicious messages regarding financial institutions can incur civil liability and may also constitute the offence of using a computer with criminal or dishonest intent under the Crime Ordinance, punishable by five years' jail.

The arrest comes as investors in Lehman Brothers Holdings' derivatives had a face-to-face showdown with Standard Chartered Bank, complaining they were out of pocket because the bank misled them.

Forty holders of Lehman Brothers' structured products voiced fears that their life's savings would disappear. Each had invested from HK$500,000 to a few million dollars.