Commission Blasts
Israeli Banks

Jerusalem (JTA) — Israel's
financial establishment is reel- stock exchange were also taken
ing from the impact of a report to task for failing to heed warn-
released last Sunday by the ings of an imminent collapse.
Bank shares were the most
special commission set up to in-
vestigate the collapse of bank popular form of personal sav-
shares and other stocks that ings until 1983 when deter-
touched off a financial panic iorating economic conditions
and periodic devaluations of the
three years ago.
The commission, headed by Shekel precipitated a rush to sell
Supreme Court Justice Chaim them of in order to buy Dollars
Beisky, was scathing in its and other hard currency.
The banks which issued the
criticism of the country's
leading commercial banks and shares, were shoring up their
their senior officers, the stock value while keeping the public in
exchange and the entire banking the dark. That practice had been
going on since the early 1970's
system.
when the Labor Party was in
It recommended, among other power.
reached serious pro-
things, that the Governor of the portions It after
Likud regime
Bank of Israel and the heads of took office in the
1977,
the report
the five largest banks be forced said.
to resign within 30 days, and
that few if any of them should
be entrusted in the future with
posts of responsibility in their Council Explores
banks or any other financial in- Consultation
stitutions, at home or abroad.
On Terrorism
The immediate response from
New York (JTA ► — The
the banks and bankers ranged
from defensive statements to Synagogue Council of America
"no comment." The 550-page (SCA), representing the ,con-
document. represented 13 gregational and rabbinic bran-
months of labor by the commis- ches of Conservative, Orthodox
sion, and dealt with past events. and Reform Judaism, has laun-
The Knesset State Control ched exploratory talks with na-
2ommittee adopted the recom- tional Catholic and Protestant
mendations of the Beisky corn- bodies for a four faith consulta-
nission and requested the tion on terrorism. Rabbi Henry
;overnment, the Tel Aviv stock Michelman, executive vice presi-
xchange management and the dent of the SCA, announced at
lecurities authorities to imple- the opening of a two-day confer-
nent them. The committee ence on terrorism here last Sun-
yarned against rushing to adopt day that the SCA has asked the
National Council of Churches
3 gislation that would give the
lanks immunity to legal action. and the Catholic Bishops Con-
Prime Minister Shimon Peres ference to consider convening a
known to have consulted with consultation on terrorism with
nancial and legal authorities Jewish, Catholic,. Protestant
fter seeing the commission and Moslem representatives.
He indicated that initial
'.port, on the need for special
;gulations to prevent a flood of discussions with his Christian •
rivate law suits against the counterparts were favorable and
anks by customers who may that additional conversations
aim, on the basis of the report, will be held during the next few
weeks. Michelman said he hopes
;at they were defrauded.
Finance Minister Moshe that a working committee for
issim, who took over the such a gathering could be con-
reasury recently win a Cabinet vened as early as this summer.
Synagogues and churches
rtfolio switch with Yitzhak
odai, said the banking system were urged to assume the leader-
as not in danger as a result of ship in a citizens' fight against
e Beisky commission report. terrorism by increased tourism
e said he would appoint a team to friendly nations, such as
experts from the Finance and Great Britain and Israel, possi-
istice ministries to study the ble trade boycotts, reaching out
port and draw practical con- to the families of the victims,
and mounting community-wide
isions.
Justice Beisky said that the educational programs on ter-
ll rec or d o of
t e h commission's rorism.
aring, comprising thousands
pages, of testimony, would be
UNIFIL Mandate
Ide available to the Attorney
Extended
neral to institute criminal
)ceedings against individuals
United Nations (JTA ► — The
le deems it necessary.
mandate for the 5,825 troop
[`he commission's report
United Nations peacekeeping
'erely criticized the former
force in south Lebanon was ex-
lance Ministers — Yoram
tended by three months last
idor and Yigael Horowitz —
week by the unanimous vote of
.h of whom held the office in the 15-member Security Coun-
Likud-led government
cil.
ore the crash.. According to
The unusual agreement
report, they knew the banks
among Security Council nations
grosslyinflating the value marked the first time the Soviet
heir shares sold on the stock Union and its allies did not abs-
hange but did nothing to halt tain on the mandate renewal
practice. The leaders of the
vote.

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