Koch Calls for Congressional Probe into Arab Boycott of Jewish Banks

In a letter to the chairman of the House Banking and Currency Committee, Congressman Edward I. Koch (D.NY) today called on Rep, Henry Reuss (D.Wis.) to initiate a Congressional investigation into the Arab boycott of American-Jewish investment banks, Koch said, “I believe that these kind of economic sanctions fly in the face of American principles, ethics and laws, and they must not be tolerated.”

Koch referred to the recent withdrawal by the Kuwait Investment Co. from two international securities offerings in which it would have been an underwriter with Lazard Freres and Co., a prominent New York investment firm with a number of Jewish partners, This was the first instance in the United States of the Arab “blacklisting” of European banking houses with well-known Jewish families.

“While the specter of a pan-Arab boycott of European-Jewish banking houses disturbs me greatly, I am particularly distressed by discrimination against American-Jewish investment banks by Arab financial investment institutions.” Koch declared.

In calling for a House Banking and Currency Committee investigation into the Arab sanctions, Koch said. “The intent and motives of the Arab organizations must be studied carefully to determine whether the boycott is in violation of American laws and whether it has resulted in religious discrimination against any American–Jewish or otherwise.”