THE ECONOMIST
26 September 2026
Turkey’s market meltdown
The numbers seemed too good to be true. Dozens of investment funds—and the financial groups behind them—posted spectacular returns, propelling Turkey’s stock market to record highs. Then the bubble burst. Several asset managers failed to pay investors seeking to cash out. Details emerged of alleged Ponzi-like schemes. Last week, the scandal wiped some $30bn from the country’s market in just two days.
Share prices have since steadied, and the crisis has not spread to bond or currency markets. But the fallout continues. Scores of finance executives have been detained, accused of market manipulation. More arrests may follow as investigators probe suspicious bank transfers. To mop up the mess, Turkey’s market regulator has moved to liquidate 131 investment funds. They are estimated to hold roughly $18bn in assets between them. At least 450,000 investors are now bracing for a painful haircut and a long wait for whatever money remains.
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