New Jersey Assembly Approves Bill to Sanction Swiss Banks

The New Jersey Assembly has approved a bill to ban state investments in Swiss banks or financial institutions unless they cooperate in returning assets to the families of Holocaust victims. Despite objections from the United States State Department, the measure was approved unanimously and would make New Jersey the first state to apply sanctions to Swiss banks. The bill would require the divestment of 280,000 shares in the Union Bank of Switzerland, worth $85 million, which represents a fraction of the state's $80 billion in investment holdings. The approval of this bill marks a significant step towards pressuring Swiss banks to cooperate in returning assets to Holocaust victims and their families.

Key Takeaways:

• The New Jersey Assembly approved a bill to ban state investments in Swiss banks unless they cooperate in returning assets to Holocaust victims.
• The bill would make New Jersey the first state to apply sanctions to Swiss banks, including divesting 280,000 shares in the Union Bank of Switzerland worth $85 million.
• The State Department has objected to the bill, stating that sanctions are not merited at this time and could jeopardize constructive discussions between Swiss banks and Jewish groups.
• Jeffrey Taufield, a spokesman for the Swiss banks, called the bill "ill-conceived" and "ill-timed", while Steven Some, director of the New Jersey Holocaust Education Commission, argued that the bill is necessary to keep pressure on the Swiss banks.
• The bill requires the divestment of 280,000 shares in the Union Bank of Switzerland, worth $85 million, which represents a fraction of the state's $80 billion in investment holdings.
• The approval of this bill marks a significant step towards pressuring Swiss banks to cooperate in returning assets to Holocaust victims and their families.

Statistics:

• 280,000 shares in the Union Bank of Switzerland would be divested under the approved bill.
• The divesting of these shares would result in a loss of approximately $85 million, a fraction of the state's $80 billion in investment holdings.
• 14 May is the date on which Undersecretary of State Stuart Eizenstat wrote a letter to Assembly Speaker Jack Collins opposing the bill.
• The state of New Jersey would be the first to apply sanctions to Swiss banks if the bill is approved and signed into law by Gov. Christine Todd Whitman.

Sources:

• "U.S. Objects to New Jersey Anti-Swiss Bank Bill" published 14 May (no date mentioned for source), New York Times, no.
• [No other sources mentioned in the original text]