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inspector of Banks and Trust Companies of the Cayman Islands took
control of the assets of BCCI Cayman Islands.
On July 29, 1991, the Federal Reserve Board began enforcement
proceedings against BCCI, the BCCI subsidiary banks in Luxembourg
and the Cayman Islands, and a Cayman Islands bank related to BCCI,
for violations of U.S. banking laws. The Federal Reserve Board
found that BCCI had, inter alia, illegally obtained control over
several U.S. banking organizations through the use of nominee
shareholders. All BCCI offices in the United States were seized
and the various U.S. banks it controlled were ordered to terminate
their relationship with BCCI. At this time, the superintendents of
banks for California and New York took control of the assets of the
California and New York agencies of BCCI.
Following BCCI's closure, "Court Appointed Fiduciaries" were
selected to identify and manage BCCI's assets in preparation for
their liquidation. In December 1991, the court-appointed
fiduciaries pleaded guilty (on behalf of BCCI) to various
violations of Federal and State laws. In 1992, the District Court
in Luxembourg, the High Court of Justice in the United Kingdom, and
the Grand Court of the Cayman Islands, ordered the formal
liquidation of BCCI. At the time of the trial herein, BCCI was
still in the process of liquidation.
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