FRANKFURT (Dec. 1)
Complete termination of bankruptcy proceedings against the former “Jewish Bank” here, which has in the meantime gone out of business, was announced by the court here today. All domestic claims have been settled in full. The recognized foreign depositors and creditors have also been satisfied.
The “Jewish Bank” was closed in 1950 on charges that it had violated foreign currency control regulations and German banking laws. The bankruptcy proceedings were instituted shortly thereafter by the State of Hesse, not – as would have been customary – by creditors or the bank itself.
An officially-fostered publicity campaign convinced German newspaper readers that the owners had fled to Switzerland after embezzling millions. The court order ending the bankruptcy proceedings makes it clear, however, that no defalcations occurred.
Although it has been known for the past four years that assets were sufficient to meet all debts, some of the people connected with the financial institution were convicted of bankruptcy fraud, while the bank itself was kept in costly receivership.