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accepting deposits from U.S. residents or citizens. However, BCCI,
S.A. and its IOMB could accept deposits from U.S. citizens and
residents.
Deposits to BCCI, S.A., its U.S. agency offices, and the IOMB
were not insured under U.S. State or Federal law. Deposits to the
IOMB of BCCI, S.A. were insured by the Bank of England under United
Kingdom law.
2. BCCI Acquisitions
In 1975, U.S. banking regulators blocked BCCI's attempt to
purchase Chelsea National Bank in New York. BCCI officials were
informed that the Federal Reserve Board would never approve BCCI's
direct acquisition of a U.S. bank.
BCCI thereafter launched a plan to acquire control of several
U.S. banks through a nominee known as Credit and Commerce American
Holdings, Netherlands Antilles (CCAH). In 1978, CCAH began
acquiring a controlling interest in Financial General Bankshares
(FGB), a multibank holding company with subsidiary banks in
Washington, D.C., Maryland, New York, Tennessee, and Virginia. The
purchase was finalized in 1982.
In 1983, First American Bank (FAB) acquired two branches of
Banker's Trust in Manhattan, which were renamed FAB of New York.
Approximately 47 branches, subsidiaries, and affiliates of BCCI
maintained U.S. dollar accounts at FAB of New York.
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Last modified: May 25, 2011