Lawsuit says banks financed terrorism

Two banks - the American Express Bank Ltd of New York and the Lebanese-Canadian Bank SAL of Beirut - are being sued by a group of Americans, Canadians and Israelis who claim the institutions funded terrorist organisations whose activities injured them and killed their relatives.

They are claiming $650m. The International Herald Tribune notes the 85 plaintiffs say in papers filed in Manhattan's state Supreme Court the banks unlawfully transferred millions of dollars for Hezbollah between 2004 and 2006. They say Hezbollah used the money to finance the launch of thousands of rockets against several northern Israeli cities, including Haifa, from 12 July to 14 August 2006. The claims are based partly on New York state Banking Department findings last year that AMEX Bank failed to establish state and federally required safeguards to prevent money transfers to terrorists.