In Brief: Fed Urged to Block Merger of Swiss Banks

Senate Banking Committee Chairman Alfonse M. D'Amato urged the Federal Reserve Board on Thursday to block the merger of two of Switzerland's biggest banks.

The New York Republican charged in a letter that Swiss Bank Corp. and Union Bank of Switzerland are refusing to return assets to the heirs of Holocaust victims. He also questioned Union Bank's ability to manage its derivatives portfolio.

"I urge the board not to approve any notice or application from this proposed merger until the board fulfills its responsibility to ensure that the operation, management, and supervision of these banks is consistent with the requirements of our laws," he wrote.

Officials at Union Bank and Swiss Bank did not return calls seeking comment.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER