(Jamaica Gleaner) An investigation is now under way at the GraceKennedy-owned First Global Bank after the discovery of trading irregularities at the institution that have resulted in predicted bond-trading losses of approximately US$19 million (J$1.68 billion).
The bank is, however, maintaining that its finances are sound.
First Global revealed in a statement on Monday evening that investigations which commenced last Monday have led to the dismissal of a senior employee from its treasury department last Friday.
“There were activities that were being carried out that breached our established procedures and involving irregularities and so we acted immediately,” Douglas Orane, chairman of First Global, told The Gleaner last night.
The Bank of Jamaica has been notified of the developments.
Orane maintained on Monday that First Global’s capitalisation remained sound in spite of the discrepancies and said the company had eliminated the risks that could lead to similar losses.
“It is in the position to meet all of its clients’ needs on a continuing basis,” he said, underscoring that parent company Grace-Kennedy stood firmly behind the bank.
Orane said the bank was working closely with another of its shareholders, International Finance Corporation – a member of the World Bank Group – to meet the needs of clients. He similarly said the situation would not impact the parent company.
