The Bank of Israel Supervisor of Banks Dudu Zaken recently instructed Bank Hapoalim (TASE: POLI) and Mizrahi Tefahot Bank (TASE:MZTF) to set aside money for the US tax evasion affair, “IDF Radio" (Galei Zahal) reported this morning.
The investigation by the US authorities against the two Israeli banks is in different stages. Bank Leumi (TASE: LUMI) has already been compelled to pay a $400 million fine for helping its customers in the US evade taxes and launder money.
"Because the instruction comes from the Supervisor of Banks and not as a result of a settlement with the US authorities then this may not be the only money set aside but rather just the first installment," said Meitav-DASH analyst Amir Adar. "In so far as we can estimate the risk, as a result of the figures that the banks will provide, then the investigation will still cast its shadow, but will fade slightly. But without the possibility of evaluating the risk the shadow will persist even after money is set aside because the feeling is (in the absence of data from the banks, we cannot find a better word) that ultimately the US regulator intends taking something from the pockets of all banks and financial institutions."
Adar maintains his "Market Perform" rating for both banks.
In late morning trading on the Tel Aviv Stock Exchange, Bank Hapoalim was down 1.5% and Mizrahi tefahot was down 1.08%.
Published by Globes [online], Israel business news - www.globes-online.com - on February 26, 2015
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