First American Board Members Deny They Knew of Bank Ties to BCCI

Board members of Washington’s largest bank told a House panel Friday that they were unaware of Bank of Credit & Commerce International’s secret ownership and that BCCI did not control the bank’s decisions.

Members of the House Banking Committee expressed skepticism at the testimony of the five members of First American Bankshares Inc.’s board.

The board members said they did not know the Middle Eastern investors who bought First American in 1982. The Federal Reserve has accused the investors of acting as front men for BCCI in the purchase.

But the panel produced a number of documents, including a 1986 internal First American memo about BCCI, that committee members said showed considerable ties between the Washington bank and BCCI.

“Some of the same investors that own First American Bankshares Inc. also own BCCI, and as a result, (First American Bank) is often referred to as being ‘like one of us’ by its officers,” the memo said.