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American Express Apologizes to Banker

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From Associated Press

American Express Co. has apologized to international banker Edmond Safra and agreed to pay $4 million to charity in atonement for fueling “untrue” Swiss media reports that Safra’s banks had been involved in money laundering.

The erroneous media reports were apparently based on information from sources acting for American Express.

In letters released today by the two sides, American Express Chairman James D. Robinson III said people “acting on behalf of American Express began an unauthorized and shameful effort to use the media to malign” Safra and Republic National Bank of New York, in which Safra holds a 33% stake.

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Robinson said he regards the reports as “untrue and defamatory.”

“While I believe in vigorous competition, there is no room in our organization for actions which could cause unjustified harm to a competitor,” Robinson said.

The letters were dated Monday.

Robinson also said in his letter that American Express, the giant U.S. financial services company, will make payments to four charities at Safra’s request, in an attempt to open a “new chapter” with Safra and his banks. The charities were the Anti-Defamation League of B’nai B’rith, United Way of America, Hopital Cantonal de Geneve and the International Red Cross.

Neither Safra nor American Express would give any details of the media attacks or of the people involved. However, several Swiss news organizations have reported in the last three months that banks related to Safra were involved in money-laundering operations.

Safra, a member of a Lebanese banking family who now lives in Geneva, has made a career of providing banking services to the very rich.

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