Lebanese Canadian Bank to Merge with SGBL

The Lebanese Canadian Bank (LCB) accused by the U.S. of money laundering and links to Hizbullah will be merged with Societe Generale, Central Bank Governor Riad Salameh announced.

Four banks had sought to acquire LCB but Societe General (SGBL) made the best offer, Salameh said late Thursday in an interview with LBCI television network.

He did not disclose the amount of the merger but banking sources in Lebanon have put it at about half a billion dollars.

“We discussed many choices to save the bank and the best way was to merge the Lebanese Canadian Bank with another,” Salameh said.

The governor also denied that the Central Bank had offered a loan to SGBL to acquire LCB.

Salameh said that Societe Generale, affiliated with the French bank of the same name, had pledged to keep all LCB employees.

In February, the U.S. Treasury Department had accused LCB of laundering hundreds of millions of dollars on behalf of a drug lord with alleged links to Hizbullah.

The bank had denied the charges and Salameh had said the institution complied with anti-laundering laws.

“The Lebanese banking sector is in a sound position and there is no threat against these banks,” he argued.(Naharnet)