17 Dec 2005

US financial watchdog ends Hawaii bank probe

8:23 am on 17 December 2005

The Bank of Hawaii says the US Securities and Exchange Commission won't recommend enforcement against the company on charges of alleged improper mutual-fund trading.

Bank of Hawaii said the regulator has ended the investigation, which was first announced by the company in September.

The SEC won't recommend action against the Asset Management Group of Bank of Hawaii, a subsidiary, or any current or former officers.

The investigation centred on alleged excessive and late market trades from 2002 to 2003 by an unnamed former employee who may have increased the value of his retirement account by more than US$100,000.

The employee was later fired and the bank said it had agreed to reimburse the fund for losses and legal costs.