Premier Yitzhak Rabin intervened personally last night in efforts to save the International Credit Bank of Geneva from collapse. Rabin summoned to his Tel Aviv office the top executives of Israel’s three largest bonks–Ernest Yaffee of Bank Leumi; Daniel Recanati of the Israel Discount Bank; and Jacob Levinson of the Bank Hapoalim. He asked them to consider heading a consortium of the Swiss Bank’s creditors to keep the institution alive.
The move, unprecedented for an Israeli political leader, was explained by the fact that collapse of the Geneva bank owned by Swiss-Jewish financier Tibor Rosenbaum would have serious repercussions for Israel. The national interest stems from the fact that large sums of Israeli money and the money of other Jewish institutions were on deposit or otherwise involved in Rosenbaum’s bank. Swiss authorities closed the bank last week pending an investigation to determine if it is solvent. The bank asked a Swiss court at the same time for a moratorium on payments.
The three bankers who met with Rabin pledged themselves to secrecy on any moves they may make to rescue Rosenbaum’s bank. Israeli financial circles appeared more optimistic today that the rescue efforts may succeed. The outlook improved after reports were received that the Hessische Landesbank Girozentrale of Frankfurt, a part owner of the Rosenbaum bank, had reconsidered its earlier decision not to put more money into the Swiss enterprise. (By Yitzhak Shargil)
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.
