JERUSALEM (Jan. 30)
Arrest of two bank officials was announced here today as investigation continued into the alleged mismanagement of two well-known private banks. The Attorney General has asked the police to deal with the case.
The banks were formerly known as Feuchtwanger’s and Ellern’s, but were recently placed under a single management as Feuchtwanger’s acquired control of the Ellern institution. The banks were taken over last week by the Bank of Israel. after examiners discovered irregularities in its operation, including the extension of “exaggerated” credit to some stockholders, thereby jeopardizing their financial stability. The Bank of Israel has fully guaranteed all depositors and holders of foreign currency in the two banks against any losses.