FSC pressures Chinatrust over Koo Jr

The Financial Supervisory Com-mission is urging Chinatrust Financial Holding Co (中信金控) to be prepared to replace vice chairman Jeffrey Koo Jr (辜仲諒) if the banker does not answer prosecutors' summons today.

If Koo does not answer the summons, the prosecutors could decide to issue an arrest warrant, at which point the Financial Supervisory Commission would ask Chinatrust Financial to remove him from its board and as vice chairman, commission spokeswoman Susan Chang (張秀蓮) said yesterday.

If Chinatrust Financial fails to take action, the commission will review whether Koo should be allowed to continue in his position and whether he should be removed for lack of integrity, Chang said.

Chinatrust Financial declined to comment yesterday on whether Koo would resign as vice chairman of the seventh-biggest financial group in Taiwan.

Chinatrust Financial would not oppose Koo resigning from his current position if the Financial Supervisory Commission were to question his qualifications, the Chinese-language United Evening News reported yesterday, citing sources from company management and lawyers.

The paper reported that Koo would today request permission from prosecutors to postpone the questioning about his role in the company's alleged misuse of funds and transactions during the controversial investment in Mega Financial Holding Co (兆豐金控).

If prosecutors do not grant permission for a postponement, Koo will return to Taiwan within three days, the paper said, citing unnamed Chinatrust officials.

Chinatrust Financial's head of public relations Vanney Cho (卓長興) said the company had no knowledge of Koo's intentions and was not aware of any plans for a change in management.

On Monday night CtiTV (中天電視) said that Koo is currently in Tokyo.

"Things are troublesome down there in Taiwan," Koo said in the footage.

Koo said he is likely to be detained if he returns to Taiwan and was worried about who would "take care of [his] kids in such a situation."