Turkey Rushes to Stop Market Panic After Fund Blowup, Freezes Assets and Sends 38 People to Prosecutors

Turkey's government stepped in to calm nervous markets on Wednesday after a fund crisis triggered a wave of selling, while authorities froze or liquidated funds and sent 38 people to prosecutors in a bid to restore order [245003][243733].

The trouble began when a major fund failed to meet its obligations, setting off a selloff as investors rushed to unload Turkish assets [245003]. Officials responded quickly, pledging to support the markets and saying they would take steps to protect investors [245003]. The moves appeared aimed at restoring confidence and preventing the panic from spreading [245003].

The selloff shows how quickly trouble at a single fund can shake an entire market [245003]. Turkey has faced similar pressure before, and its economy remains sensitive to any sign of financial strain [245003]. Authorities say they are watching the situation closely, and it is not yet clear whether their efforts will be enough to steady the markets in the days ahead [245003].

The market turmoil also spilled into politics. The DEM Party called on Turkey's Parliament to return from recess before October 1 to address the country's economic crisis, with its co-chairs issuing the demand after heavy losses on Borsa Istanbul, the country's main stock exchange [244058].