Lone Star Funds' Boss Is More or Less a Hostage in South Korea
Maybe the head of Dallas-based Lone Star Funds should have requested offering his testimony via speaker phone in South Korea's case against Lone Star Funds, as John Grayken's short trip is quickly turning into a hostage situation. Last week, prosecutors -- who are investigating Lone Star Fund's on-the-cheap purchase of the Korea Exchange Bank, after which Lone Star tried to flip it for substantial tax-free profit -- said they were going to interrogate Grayken for hours and hours every day, for up to 10 days. Whoa, whoa -- only, not so fast.
Prosecutors aren't confirming the travel ban, and the Associated Press says today it's "unclear whether Grayken was free to leave South Korea." But the last sentence of today's update suggests Grayken will get to know South Korea a little better than expected: "[Kim Kyung-soo], the prosecution spokesman, would say only that foreign nationals can be banned from leaving the country for up to 20 days." Grayken should have taken his own advice and stayed in Dallas; he pretty much knew this was gonna happen. --Robert Wilonsky