BANKING & FINANCE - June 23, 1992
From Times Staff and Wire Reports
Court Says Banks Must Pay: The U.S. Supreme Court, in a case with billions of dollars potentially at stake, left intact a ruling that said American banks with branches overseas must pay depositors when foreign governments freeze those accounts. The court rejected an appeal by Citibank, which was ordered to pay a depositor whose account was frozen in 1983 by the Philippine government of the late Ferdinand E. Marcos. The justices reviewed the dispute in 1990, and at that time ordered the U.S. 2nd Circuit Court of Appeals in New York City to reconsider its earlier decision against Citibank. The appeals court last June once again decided against Citibank and in favor of the depositor, Wells Fargo Asia Ltd. in Singapore.
