Bank of Jerusalem Stock Drops Following False Embezzlement Rumors
A false rumor linking a bank employee's brief disappearance in Europe to an embezzlement scandal wiped 130 million shekels from Bank of Jerusalem's market value, though analysts point to low trading volumes and financial results as underlying factors.
A mysterious disappearance of an employee and her daughter during a European vacation temporarily wiped 130 million shekels off the market value of Bank of Jerusalem. On August 12, reports emerged that Mali Yehalomi and her daughter Lial had vanished in Vienna without a trace, triggering widespread speculation on social media linking the incident to a potential embezzlement scandal at the bank.
Following the rumors, Bank of Jerusalem shares plunged by as much as 12.3% on August 13 when the Tel Aviv Stock Exchange opened. The bank's management swiftly moved to calm investors and customers, issuing formal statements denying any connection between the employee and bank funds, and confirming that no financial irregularities were found.
On August 14, Mali and Lial were found safe and sound on a bus in Argentina, with authorities confirming they had cut off contact voluntarily and no criminal offense was suspected. Despite the resolution of the disappearance, the incident left a lasting reputational mark, with the bank's stock dropping 8.7% since August 12 while the banking index rose 3.7%.
Capital market experts note that the stock's underperformance is also driven by low daily trading volumes of around 90,000 shekels and weak liquidity, alongside separate financial results showing a 31% drop in net profit for the second quarter of 2026 to 45.1 million shekels compared to the previous year.
