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Vietnam Regulator Calms Market After Bank Run Tied to Probe

  • Police announce detention of chairwoman of property firm
  • Customers race to pull money from fifth largest bank
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Vietnam’s central bank sought to calm markets after investors sold financial stocks and customers of the nation’s fifth-largest commercial bank raced to withdraw their money following a police probe into a prominent real estate tycoon. 

Early Monday, Vietnam’s benchmark index and bank stocks plunged after the police over the weekend announced the detention of Truong My Lan, chairwoman of real estate conglomerate Van Thinh Phat Holdings Group and other company officials for allegedly obtaining property through fraudulent means. The move was in relation to an ongoing investigation into the issuance and trading of bonds of some companies where trillions of dong were allegedly appropriated in 2018 and 2019, the public security ministry said in a statement on its website. Van Thinh Phat didn’t respond to requests for comment.