Representative Bella S. Abzug (D-L,NY), in a hearing today before the Board of Governors of the Federal Reserve System, said that the recently passed Equal Credit Opportunity Act Amendments of 1976. If properly enforced, would virtually eliminate certain discriminatory practices by commercial banks and lending companies which participate in the Arab League economic boycott against Israel.
Testifying before the board, which was considering implementation of the amendments, the Congresswoman noted that few realize that the amendments, which were signed into law March 23 and become effective March 23, 1977 “greatly limit the Arab boycott by prohibiting discriminatory denial of loans to Jewish-owned-businesses or companies doing business with such firms.” The amendments prohibit discrimination in credit transactions based on race, color, national origin, religion, sex or marital status, or age.
Ms. Abzug, who is chairwoman of the House Government Information and Individual Rights Subcommittee, stated that banks, in processing letters of credit to finance trade agreements between U.S. corporations and an Arab nation, have often required the companies to submit various boycott compliance documents before ranting payments. “This, and other boycott tainted finance practices would be barred under the new equal credit measure where compliance would entail refusal to deal with firms owned by Jews or including Jews in their management.”
She noted that “Companies presently treat Federal anti-boycott laws as a Joke. Outlawing discriminatory credit practices cuts the boycott off at the pockets–a fact American businesses will not be able to ignore.”
A new state law in New York which became effective last Jan. 1, makes it unlawful for banks, shipping companies, and other corporations to boycott, blacklist, or refuse to deal with any business or individual because of race, color, creed, ethnic origin or sex. “Large commercial banks could get around the New York law by signing the papers in Houston or some other location outside New York,” Ms. Abzug said. “The new Federal act will block that end-run.”
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.
