Going After the Banks

May 15, 2008 - 12:39 PM by Stephanie

This is an interesting potential precedent setter centered around holding financial institutions responsible for funding terrorism. It’s not new but…oh well… I’m soooo thinking of Iran-Contra right now…Oh well….

According to Israel Matzav, American victims of bombing and terror incidents in Israel are filing a class action claim against Switzerland’s largest bank, Swiss Bank UBS AG, for more than $500 million, accusing the bank of helping fund militants behind the attacks through dealings with Iran.

The lawsuit seeks damages from Switzerland’s largest bank for more than 50 U.S. citizens hurt or relatives of those killed in bombings in Israel between 1997 and 2006 that it said were carried out by militant groups Hezbollah, Hamas and the Palestinian Islamic Jihad.

UBS AG broke several 1996 U.S. laws that prohibit persons and companies from engaging with state sponsors of terrorism and were designed to impede Iran’s access to foreign capital, the suit said.

The lawsuit, filed on Friday in federal court in New York, cited U.S. government reports that conclude Iran has been the main sponsor of Hezbollah and Hamas since 1996, including providing tens of millions of cash annually. The U.S. government considers Hamas and Hezbollah terrorist organizations.

Reuters has the full story…Interesting stuff

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