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The McClatchy Company 02/07/2010 8:16 PM ET text size: T | T

ICC-Cal CEO Chechik to resign: MasterCard has fined ICC-Cal $8

million over problematic clearing of betting activity. [Globes, Tel Aviv,
Israel]

Feb. 7--Another scandal has erupted at Israel Credit RELATED ARTICLES

Cards-Cal Ltd. (ICC-Cal) (Visa). "Globes" yesterday Investment Industry Regulatory
Organization of Canada - Trading
revealed that MasterCard Worldwide Inc. (NYSE: MA) Halt - INTERCAP eCommerce
Inc. - IEG
has fined the company $8 million for problematic 03/18/2010 1:59 PM ET
clearing of betting activity. Banking sources believe
Investment Industry Regulatory
that ICC CEO Boaz Chechik will be asked to step Organization of Canada - Trading
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down later this year.
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03/18/2010 1:40 PM ET
The Bank of Israel is also concerned about the new
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Israel Discount Bank (TASE: DSCT) owns 71.8 Assessment
03/18/2010 12:48 PM ET
percent of ICC and First International Bank of Israel
Britain's car industry gets
(TASE: FTIN1;FTIN5) owns 28.2 percent. Discount production boost
03/18/2010 12:34 PM ET
Bank CEO Giora Ofer, who also serves as ICC
chairman, will reportedly now lead a campaign to
remove Chechik, who has served as ICC CEO since 2003.

The leading candidate to replace Chechik is Discount Bank head of retail operations Israel
David, who has held this position since 2006, and is considered an associate of Ofer.
However, David holds a key position at the bank, and Ofer may prefer keeping him in
place.

Other possible candidates for the ICC CEO post include Ace Auto Depot Ltd.
(TASE:ACDP) chairman Yuval Gavish, a former CEO at Leumi Mortgage Bank; and
former head of the retail division at Bank Hapoalim (TASE: POLI) Uri Paz.

In the aftermath of previous clearing problems at ICC, which "Globes" revealed in October
2009, Visa Inc. (NYSE: V) unit Visa Europe levied a €9 million fine on the
company. ICC had been clearing online transactions for nutritional supplements and
unauthorized drugs, including Viagra. MasterCard began its own investigation into ICC in
the wake of Visa's findings. Visa accounts for about 60 percent of ICC's clearing
transactions, and MasterCard for about 40 percent.

MasterCard Europe president Javier Perez will come to Israel in two weeks for meeting
with all the parties involved.

Meanwhile, Discount Bank is conducting its own in-depth in-house investigation into ICC,
which has led to the resignation of ICC CFO Sigal Fattal.

To see more of the Globes or to subscribe to the newspaper, go to http://www.globes-

online.com.

Copyright (c) 2010, Globes, Tel Aviv, Israel

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