3 Top Executives of State-owned Banks Indicted in FAT Hollowing Out Case

3 Top Executives of State-owned Banks Indicted in FAT Hollowing Out Case

Source: UDN

July 31, 2020

The Taipei District Prosecutors Office investigated the Far Eastern Air Transport Corp. (FAT) hollowing-out case, and indicted FAT Chairman Chang Kang-wei (張綱維) along with nine others yesterday. Among them, Jason Liao (廖燦昌), Chairman of First Financial Holding Co., Hwang Bor-chang (黃伯川), Chairman of the Land Bank of Taiwan, and Chen Shih-ching (陳世卿), President of Taiwan Cooperative Bank (TCB), were appointed by Premier Su Tseng-chang (蘇貞昌) in a shakeup of top executives at state-run financial institutions in April 2019. This is the first time chairmen/presidents of state-owned financial institutions have been indicted during their terms.

Chang was accused of borrowing money from loan sharks to fund the operations of FAT. After thus encountering a financial crisis, he asked Jason Liao, then TCB Chairman, to pressure rank-and-file bank officers to approve loans to FAT, in an attempt to hollow out FAT’s assets. The prosecutors criticized Liao for disregarding professional ethics. The Ministry of Finance yesterday noon approved Liao’s resignation.

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