http://www.bloomberg.com/news/2014-09-17/turkey-raising-specter-of-bank-collapse-as-asya-targeted.html
Turkey faces the prospect of its first bank collapse in at least a decade as Bank Asya (ASYAB) struggles to maintain market confidence amid pressure from President Recep Tayyip Erdogan over its ties to exiled preacher Fethullah Gulen.
The Istanbul-based lender has lost 42 percent of its market value since trading resumed on Sept. 15 after a five-week suspension. Asya said yesterday it’s seeking 225 million liras ($102 million) of fresh capital from shareholders after the loss of deposits and government contracts depleted its finances.
Bank Asya is caught in a political battle after Erdogan accused U.S.-based Gulen of starting a corruption probe against members of his government in December. The feud has spilled into business, where companies with links to Gulen such as Asya and mining company Koza Altin Isletmeleri AS (KOZAL) say they’ve been subject to negative regulatory actions and news reports.
“Companies that are partnered with an entity that has strong connections to or is managed by the Gulen movement may risk disruptions to business and financial loss,” Anthony Skinner, head of analysis at U.K.-based risk forecasting company Maplecroft, said by e-mail. “Capital market investors with interests in Gulen-linked companies may also take a hit.”
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