NICOSIA, Cyprus (AP) — Cyprus' largest bank and six former officials have been fined over the purchase in 2010 of 2.4 billion euros ($3.26 billion) worth of junk-rated Greek government bonds.
The Securities and Exchange Commission on Friday slapped Bank of Cyprus with a 160,000-euro fine for failing to promptly inform investors of the risky bond purchases in January and April of 2010. The bank's ex-chief executive officer and former executive director received fines of 140,000 euros and 120,000 euros respectively for being "negligent." Four risk management committee ex-members were each fined 10,000 euros.
The Bank sought state support after taking huge losses when more than half of the bonds' value was written off as part of Greece's bailout program. A March financial rescue for Cyprus decimated the country's financial sector.