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Israeli Cabinet Group Studies Stronger Supervision over Banks

A special ministerial committee today began a study of proposed amendments to the banking laws, to strengthen the Government supervisory powers over financial institutions.

The committee is believed to have convened as a consequence of the discovery of alleged irregularities in the management of Feuchtwanger’s bank, a private institution which recently took over Ellern’s, another private bank.

Two of the bank’s arrested directors were held for a further hearing by a Tel Aviv magistrate today at the request of the police department. Meanwhile, a third director has been arrested, and is due to appear before a magistrate.