SEC eases hold on two Gulf banks

The US Securities and Exchange Commission (SEC) has agreed to reduce the scope of an asset freeze against two Gulf firms named in an insider trading case.

The Bahrain-based United Gulf Bank (UGB) and the Kuwait-based Kipco Asset Management Company both had assets in US bank accounts frozen after the SEC charged that Hazem al Braikan, a Kuwaiti businessman, used the accounts as part of a share manipulation scheme.

Mr al Braikan allegedly used Kipco and UGB accounts, as well as accounts owned by Al Raya Investment Company, the Kuwaiti firm where he was chief executive, to buy large amounts of stock in Harman International Industries, a maker of high-end audio equipment, and Textron, a manufacturing conglomerate. He then is alleged to have planted fake stories about takeovers of both companies, leading to a jump in their share prices.