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The International Legal Status Of Foreign Government Deposits In Overseas Branches Of U.S. Banks, Robert B. Owen, Lori Fisler Damrosch
The International Legal Status Of Foreign Government Deposits In Overseas Branches Of U.S. Banks, Robert B. Owen, Lori Fisler Damrosch
Faculty Scholarship
Political as well as economic forces can lead governments to default on their obligations to foreign banks. For example, the demand of the revolutionary government of Iran that the United States return he former Shah and his wealth to Iran and the subsequent seizure of American embassy personnel in Tehran on November 4, 1979, were political events which quickly resulted in a default on Iranian obligations to U.S. banks.
Following the embassy seizure, the status of the Iranian Government's huge deposits in overseas branches of U.S. banks quickly came into question. In an effort to coerce the United States to …