Collapse and Takeover By Government
On June 6, 1985, OTB suddenly announced that it was on the brink of collapse, due to its severe cash flow and bad debt problems. Bad debts held by the bank reached US$89.5 million. To recover the confidence of the public and investors of the Hong Kong banking system, the Hong Kong Government stepped in and took over OTB in the following day. From 1985 to 1986, the government ordered the Royal Hong Kong Police and ICAC to investigate the causes of OTB downfall. In May 1986, the former chairman of OTB, Patrick C.T. Chang, was arrested at the Hong Kong International Airport reportedly with a large amount of cash and jewellery. In 1987, Chang and OTB's former senior management were sentenced to jail by Hong Kong Law Court.
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Famous quotes containing the words collapse, takeover and/or government:
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“God reigns, and the Government at Washington still lives!”
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