The Budapest municipal court of appeals has rejected an appeal by Soros Fund Management against a decision by Hungarian financial market regulator PSzÁF fining it HUF 489 million for exercising unfair market influence.
PSzÁF announced the resolution on March 26, 2009. It said Soros Fund Management borrowed hundreds of thousands OTP Bank shares and sold them in the last minutes of trade on the Budapest Stock Exchange on October 9, 2008, causing the price to fall more than 9%. PSzÁF estimated the fund profited $675,000 from the transaction, and it set the fine at four times that amount.
The Budapest municipal court rejected in December an earlier appeal by Soros Fund Management, but the decision was not legally binding. The court of appeals rejection of the appeal is legally binding.
George Soros, the Hungarian-born US investor who owns the fund, earlier called the sale an unfortunate matter. “I particularly regret the incident due to my strong personal connection to Hungary, even if the company's broker did not violate current Hungarian regulations,” Soros said. (MTI – Econews)