Gonzalez vs. Kissinger's Associates

By Corn, David | The Nation, May 27, 1991 | Go to article overview

Gonzalez vs. Kissinger's Associates


Corn, David, The Nation


Last we left Henry Gonzalez, chair of the House Banking Committee, he was poking into the Banca Nazionale del Lavoro (B.N.L.) scandal and finding that various US. agencies were not cooperating with his investigation. The bank made at least $3 billion in unauthorized loans to Iraq before the war [see "Beltway Bandits," May 13]. In the course of his inquiry, Gonzalez has run headlong into the geofinancial gang led by Henry Kissinger.

Kissinger has been a paid adviser to Banca Nazionale, and Lawrence Eagleburger, onetime president of the consulting firm Kissinger Associates and now Deputy Secretary of State, was a godfather to a bank that had a substantial relationship with B.N.L. This bank, L.B.S., a subsidiary of a Yugoslav institution called Ljubljanska Banka, conducted at least 20 percent of its New York branch business with B.N.L.

Eagleburger was U.S. Ambassador to Yugoslavia in the 1970s. Later as a businessman he maintained ties to his old stomping grounds. He served as a director of L.B.S. from 1986 until 1989 and helped the bank and Global Motors, the distributor of Yugo cars, open shop in the United States.

While reviewing transactions of the U.S. Export-Import Bank, which provides credit guarantees to U.S. exporters, Gonzalez asked about Yugoslavia. He found that Ex-Im Bank's exposure in Yugoslavia exceeds $1 billion and that Yugoslavia may be receiving special treatment. …

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