Stock Exchange Move by the People's Alliance; 'Bankrupt Allegation'

According to Cumhuriyet.com, in addition to manipulators and four brokerage houses, many politicians were also negatively affected by the massive collapse in banking stocks on Borsa Istanbul. It was reported that a former minister in the AK Party administration bought 5 million lots of TSKB shares at 4 liras, while seven MHP deputies allegedly lost nearly 100 million TL.

Prior to the crisis that caused brokerage houses and manipulators in Borsa Istanbul to go bankrupt, Takasbank made a procedural change in the Futures and Options Market (VIOP) that envisaged an increase in position limits on a registry basis, and after the crisis, it is being questioned why it lowered them even further than before. The reason why Borsa Istanbul made this change, which led to an increase in risk appetite, and who gave the instruction are being sought for an answer. On May 31, 2022, before the buying that caused an extraordinary rise in banking stocks began, Takasbank suddenly made a procedural change, and in a statement addressed to banks and brokerage houses, Takasbank's Central Risk Management Team explained the change made in Article 24, which regulates the "position limit by registry" in VIOP, with the following statements: "The General Manager may increase the limit increase from five to 10 times by taking into consideration the developments in the market and the opinion of the Exchange." This means that while a person or institution can buy or sell ten times for an investment of 1 lira, they will have the right to increase their risky position 10 times, up from 5 times previously. While collateral ratios were increased to solve the problem, loans were extended to Ahlatçı and Alnus Yatırım, two brokerage houses that fell into difficulty. Gedik Menkul Değerler, which suffered huge losses, had to increase its capital. While the Borsa Istanbul management activated the Volatility-Based Measure System to protect investors from the risks brought about by excessive volatility in stocks that had previously peaked five times, it did not resort to measures such as raising collateral, placing stocks on gross clearing or activating circuit breakers in banking stocks that peaked 12 times. Only after the bubble burst and investors, manipulators and brokerage houses suffered huge losses did the government take some precautionary measures. One of these measures was to reduce the limit-based increase rate in VIOP, which it had increased from 5 to 10 before the crisis, to even lower than it was before May 31, 20022, when it changed the procedure. On May 31, Takasbank increased the limit increase rate based on registry from 5 on May 30 to 10 on May 31, and on October 6, it reduced it to 3 this time. It is rumored in both political and stock exchange lobbies that many politicians and senior bureaucrats invested in banking stocks due to the appetite to make a profit in the stock market and suffered huge losses. There are allegations that a former minister and AKP executive bought 5 million lots of TSKB shares at 4 liras, that 7 MHP deputies lost nearly 100 million and that they and Ahlatçı Investment, which is close to the government, had manipulators carry out an operation to save their money. Source: cumhuriyet.com Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!