The Knesset. Finance Committee is to conduct a thorough debate on the affairs of the Israel Corporation and on its heavy involvement in the International Credit Bank of Geneva whose chairman is Jewish financier Tibor Rosenbaum. Government and opposition Knesseters agreed at a special plenary session today to pass the issue on to committee without a full debate in the House.
As the Knesset discussed the issue, reports continued to flow in from Switzerland about the crisis enveloping the bank. The Hessische Landesbank Girozentrale pulled out yesterday returning its 36 percent holding in the International Credit Bank, claiming it was entitled to do so under the contract between them, and alleging that the Credit Bank’s dealings under Rosenbaum had not been “in accordance with the usual norms of international banking.”
The Hessische Landesbank, reportedly together with Israel’s Histadrut-owned Bank Hapoalim and other Jewish banking interests abroad, had been making efforts over the past two weeks to help the Credit Bank. The Credit Bank is now expected to be put into receivership by the Swiss central banking authorities, although there were still reported last-minute frantic efforts by European Jewish financiers to help Rosenbaum and his bank.
Last week, in a statement received by the JTA in New York from Hans Harry, chairman of the executive committee of the Credit Bank. it was stated: “We are working normally. Our liquidity is quite in order. We have no financial problems. Our bank is open, and always has been.”
COMPLAINT FILED AGAINST TSUR
Meanwhile, in Israel the interim management of the Israel Corporation has filed a complaint with the police against the corporation’s deposed manager. Michael Tsur. The charge is that Tsur transferred $8.5 million of the corporation’s funds for investment in Rosenbaum’s Liechtenstein-registered companies without the knowledge or consent of the IC board. Tsur is alleged to have acted knowingly against IC’s interests.
In his immediate reaction, Tsur declared that everything which he had done had been intended in the best interests of the corporation. A police spokesman said police investigators were already checking the IC files at the request of the Attorney General, and that Tsur had been asked not to leave the country for the time being.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
