Business Notes Finance

Shortly after 6 p.m. last Thursday, police at Hong Kong International Airport seized a young man in a well-tailored business suit. He was, it turned out, no ordinary criminal, but one of Hong Kong's most prominent businessmen: Patrick C.T. Chang, 35, chairman of Overseas Trust Bank (OTB), the colony's fourth largest bank (deposits: $1.2 billion). Less than three hours before the arrest, the bank had suddenly closed down, declaring itself "insolvent."

Sir John Bremridge, Hong Kong's Financial Secretary, blamed the bank's collapse on "criminal dealings" by its senior management. Bremridge speculated that Chang has as much as $13 million stashed away somewhere and was trying to flee to a country that has no extradition treaty with Hong Kong.

The bank's failure added to the financial woes of Hong Kong, which has also suffered from a slump in real estate values and jitters about what will happen when China takes control of the British colony in 1997. On Friday Hong Kong's Legislative Council passed a bill under which the government will take over the bank and reopen it this week. But depositors may not have the same confidence in the bank's motto: "You can trust OTB."