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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Currency who wrote (23515)	12/8/1998 3:10:00 AM
From: TokyoMex	Read Replies (1) \| Respond to of 119973

Blow for Deutsche-Bankers Trust deal By John Authers in New York Deutsche Bank's planned takeover of Bankers Trust could face a serious delay after Alan Hevesi, the financial comptroller of New York City, said it should not be approved until "all claims against Deutsche on Holocaust-related issues are dealt with and resolved". Mr Hevesi led the co-ordinated threat of sanctions by US pension funds that forced the two largest Swiss banks into a $1.25bn settlement with Holocaust victims. He refused to rule out using the same measures against Deutsche, which has been sued in the US over its role in handling stolen gold during the second world war. US campaigners for Holocaust victims indicated they were determined to use the Deutsche-Bankers Trust merger - the largest cross-border acquisition of a US financial institution - to help force a global resolution of the claims against German banks and industrial companies. In the November 30 press conference called to announce the deal Rolf Breuer, the chairman of Deutsche, said he had brought up the Holocaust issue when he visited US regulatory authorities and had a "lengthy and constructive dialogue" with the World Jewish Congress. Deutsche officials yesterday referred inquiries to that statement. Mr Breuer and Frank Newman, head of Bankers Trust, addressed Bankers Trust and Deutsche staff in New York about the merger plans yesterday. Mr Breuer assured Bankers Trust staff that employees from the two firms would be assessed on an equal footing. Deutsche has said there will be 5,500 job losses as a result of the merger. Michael Hausfeld, the Washington lawyer who took a leading role in the class action lawsuit against the Swiss banks, said there was "no chance" of the takeover being approved without an agreed settlement with Holocaust victims. But he was optimistic a settlement involving Deutsche could be negotiated within six months. Elan Steinberg, the executive director of the World Jewish Congress, said: "We haven't called for the blocking of the merger, and we will decide what to recommend in the next two weeks." The merger has to be cleared by both the New York State Banking Department, a political body appointed by the governor, and by the Federal Reserve. The banking department did not comment yesterday, citing its policy of avoiding public comment on regulatory issues. Earlier this year, the banking department delayed the merger of UBS with Swiss Bank Corporation for several months while it waited for assurances the banks would reach a settlement with Holocaust victims. State banking regulators only cleared the deal after being advised by the World Jewish Congress that a settlement with the Swiss banks would be forthcoming. This was followed by a dispute between banks and lawyers over what had been promised. Mr Hevesi refused to rule out co-ordinated sanctions against Deutsche, although he said that he did not want to threaten such action "unless we have no other choice". The planned sanctions against the Swiss banks included barring them from bond underwritings, and divestment by state pension funds of all shares in Swiss companies. RELATED ARTICLES EUROPE: Deutsche to buy Crédit Lyonnais Belgium DEUTSCHE: Alliance banks on speedy integration Solv-Ex seeks damages from Deutsche Bank MERGERS: Sizing up the mega-deals M&As: Alice in mergerland