Thursday, December 18, 2014

Bank Leumi Reported to Be Near Deal with U.S. DOJ and NY State Dept of Financial Services (12/18/14)

Steven Scheer, UPDATE 1-Israel's Leumi sees 1.4 bln shekel U.S. tax settlement by mid-Jan (Reuters 12/10/14), here.
Leumi, Israel's second largest bank, expects to pay 1.4 billion shekels ($355 million) to settle a U.S. investigation into whether it helped American clients evade taxes, mainly through its private bank in Switzerland. 
The process is expected to be completed by the middle of January 2015, if not by the end of this year, Leumi's legal adviser Hanan Friedman told parliament's economics committee on Wednesday, according to a statement from the committee. 
A source told Reuters last week that Leumi would likely pay $270 million to the U.S. government and another $130 million to New York State's Department of Financial Services (DFS), which regulates certain banks in the state.
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"After the (Leumi) investigation is completed, we will examine ... the responsibility of the bank's managers," David Zaken, Israel's banking regulator, told the panel. 
Financial daily Calcalist reported on Wednesday that as part of the final settlement Leumi's U.S. activities will be supervised by U.S. regulators. The bank has started the process of transferring client assets in its Swiss private banking business to Julius Baer. 

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