Mehmet Şimşek's 'stock market manipulation' move: He convinced Erdoğan

Treasury and Finance Minister Mehmet Şimşek recently made notable statements regarding allegations of manipulation in the stock and fund markets. Stating that they are aware of irregular transactions conducted through certain funds, Şimşek said, "We will increase the intensity of our fight against manipulation."

Following these statements, journalist Murat Yetkin claimed that Şimşek had convinced President Recep Tayyip Erdoğan on this matter. Yetkin wrote that a comprehensive operation regarding irregular transactions in the stock market could be on the agenda.

HE INTERRUPTED BUDGET NEGOTIATIONS FOR THE TSPB MEETING

In his speech at the Turkish Capital Markets Association (TSPB) meeting on November 4, Minister Şimşek drew attention to speculative movements in the stock market and used the following expressions:

"We know that manipulation is being carried out through some funds. We will address the regulatory deficiencies in this area and take the intensity of our fight beyond just combating informality."

According to Yetkin, Şimşek interrupted the 2026 budget negotiations to attend this specific meeting in Istanbul. The message he delivered at the meeting was interpreted as "the playing field in the stock market will narrow."

"JET" PREPARATION ANNOUNCEMENT FROM THE CMB

Immediately after Şimşek's statements, a notable announcement came from the Chairman of the Capital Markets Board (CMB), İbrahim Ömer Gönül.

Stating that heavy sanctions would be applied to portfolio management companies that engage in manipulation, Gönül announced, "We have prepared measures that could go as far as license cancellation, in addition to monetary fines."

PROSECUTOR'S OFFICES AND SDIF INVESTIGATIONS ARE EXPANDING

In recent months, accusations of "stock speculation" and "money laundering" have come to the fore regarding Hat Holding, Investco Holding, Can Holding, and Ciner Holding, which were seized by the Savings Deposit Insurance Fund (SDIF) due to certain transactions carried out on the stock market.

In financial circles, there are assessments that some hedge funds have turned into centers of manipulation and that small investors are being victimized.

According to market sources, some hedge funds attract investors by inflating the shares of particularly small-scale companies, and then make large profits by selling at high prices. This situation has caused some funds to grow rapidly over the last year, while no significant increase has been observed in the total market value of Borsa Istanbul.

NEW STEP DUE TO GREY LIST CONCERNS

In Yetkin's report, it was stated that concerns over "international trust" lie behind the preparations for the operation. Accordingly, preventing the risk of Turkey re-entering the FATF Grey List, from which it was once removed, is among Şimşek's primary goals.

According to the assessments of former MASAK Deputy Chairman Ramazan Başak, Turkey was placed on the FATF Grey List in 2021 due to deficiencies in the CMB's audits. Başak pointed out that the FATF will conduct audits in Turkey between November 24-28, noting that this process is of critical importance.

According to Yetkin, Şimşek believes that Turkey remaining inactive regarding stock market manipulations "could cost dearly, including re-entering the Grey List."

"HE CONVINCED ERDOĞAN" CLAIM

The article also claimed that Minister Şimşek convinced President Erdoğan on this issue. According to sources, it was suggested that the operations to be carried out might not be limited only to the CMB and Borsa Istanbul; Public Prosecutor's Offices and relevant public institutions could also be involved in the process.

News Source: 12punto