Joyce Aston - Page 8

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          BCCI, S.A. obtained approval from banking regulators in California          
          and New York for the establishment of agency offices in those               
          States, and BCCI Cayman Islands obtained approval from the banking          
          regulators in Florida for the establishment of agency offices               
          there.                                                                      
               The Federal Reserve Board had limited supervisory authority            
          over BCCI's U.S. agency offices.  It was authorized to supervise            
          only the U.S. activities of the agency offices.  The Federal                
          Reserve Board did not have:  (1) Access to the bank's worldwide             
          records; (2) authority to go outside the United States to make any          
          determination regarding the bank's overall structure; or (3)                
          authority to obtain information concerning the asset quality                
          capital of the bank as an entirety.                                         
               In response to the lack of Federal control over BCCI's                 
          operations in the United States, Congress enacted the Federal               
          Deposit Insurance Corporation Improvement Act of 1991, Pub. L. 102-         
          242, sec. 202, 105 Stat. 2286.  This law requires foreign banks to          
          obtain approval from the Federal Reserve Board before conducting            
          business in the United States.  It also requires foreign banks to           
          provide Federal regulators access to information regarding their            
          worldwide operations.                                                       
          4.  Petitioner's Bank Accounts                                              
               On June 20, 1980, petitioner and her husband opened account            
          No. 03000571 at the IOMB of BCCI, S.A., depositing 54,125 pounds            





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