Ban on Paying BCCI Creditors Lifted

NEW YORK - A U.S. District Court in New York last week lifted a temporary restraining order barring the New York and California banking departments from paying any claim linked to the liquidation of Bank of Credit and Commerce International.

In July, banking departments in both states took control of assets at BCCI's U.S. units after its Luxembourg-based parent was seized by regulators worldwide on fraud charges.

The restraining order was issued in August after the company's Luxembourg receivers sought to block disposal of any seized asset pending a worldwide settlement of claims against the bank. Both New York and California regulators had opposed the order on grounds it would force U.S. creditors to seek redress in a foreign court.

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