[Congressional Record Volume 143, Number 54 (Wednesday, April 30, 1997)]
[Senate]
[Pages S3831-S3833]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           SWISS SUPPORT FOR REQUEST TO PUBLISH ACCOUNT NAMES

  Mr. D'AMATO. Mr. President, yesterday I received a very important and 
a very encouraging letter from Ambassador Thomas Borer. Ambassador 
Borer is the special representative that the Swiss have appointed to 
handle the very perplexing and very troublesome question as it relates 
to the assets of Holocaust victims during and after World War II, 
particularly those as they related to the accounts that were opened in 
Swiss banks.
  Let me read this letter. It is a short one, but a very important one. 
It is from the Embassy of Switzerland, addressed to Senator D'Amato as 
chairman of the Banking Committee, Washington, DC:

       Dear Mr. Chairman: I am referring to your letter of March 
     20, 1997 and my reply of March 27, 1997 regarding the 
     question of publishing the names of dormant account holders 
     from the Holocaust era.
       Please find enclosed [a] copy of the letter of the Chairman 
     of the Swiss Bankers Association to the Chairman of the Swiss 
     Federal Banking Commission dated April 28, 1997. In this 
     letter the SBA expresses its unequivocal support for this 
     idea.

  I am going to place this letter in the Record.
  Mr. President, I ask unanimous consent that the letter be printed in 
the Record.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:

                                       Embassy of Switzerland,

                                         Washington, DC, April 28.
     Hon. Alfonse D'Amato,
     Chairman of the Senate Banking Committee, U.S. Senate, 
         Washington, DC.
       Dear Mr. Chairman: I am referring to your letter of March 
     20, 1997 and my reply of March 27, 1997 regarding the 
     question of publishing the names of dormant account holders 
     from the Holocaust era.
       Please find enclosed copy of the letter of the Chairman of 
     the Swiss Bankers Association to the Chairman of the Swiss 
     Federal Banking Commission dated April 28, 1997. In this 
     letter the SBA expresses its unequivocal support for this 
     idea.
           Sincerely yours,
                                                  Thomas G. Borer,
                                                       Ambassador.

  Mr. D'AMATO. Mr. President, let me tell you what this is about. I did 
write to Ambassador Borer. I spoke to him on March 20. And I indicated 
to the Ambassador that I thought that it was awfully important that the 
Swiss Bankers Association, that the Swiss Government do something to 
demonstrate tangibly an effort of good faith, that would be very 
important, that there are many accounts--we do not know exactly how 
many; but certainly they go into the hundreds, and they may go into 
more--that have been dormant since 1945, that it made little sense to 
wait years until the Swiss completed their investigation for the 
release of these names, that even if it took legislation--and I 
explained to him that it had been advised to me that there was a good 
possibility that it might not even take legislation--that the names of 
these accounts--those are dormant accounts that were opened prior to 
1945 and that have been dormant since that point in time --that the 
need for secrecy certainly no longer existed, but that there was a need 
to connect the families and the heirs today who might have claim to 
those accounts, to their heirs, to their families.
  It is not just a question of money. It is a question of doing what is 
right, because unfortunately for 50-plus years people have been denied, 
heirs have been denied. They have had to go through a tortuous process, 
that in many cases it is just impossible to ascertain what moneys may 
or may not have been left to them, and that by the publication of the 
names in some registry, in some total form--something that is being 
done in many countries, in many States in our country where there is a 
dormant account, the names of the people are actually published so that 
people who may have claims can come forth.
  I wrote to him, and I will just quote you part.

       I am writing to you to impress upon you the need for the 
     passage of legislation which would allow for the publication 
     of names of dormant accounts presently held in Swiss banks. I 
     feel that this change would go a long way towards solving 
     this enormously difficult and complicated problem and would 
     equally be seen as a productive step which I am sure would be 
     warmly received.

  I am pleased to tell you that the Ambassador reported to me 
yesterday, yesterday morning, that the Swiss Bankers Association 
unequivocally supports the concept of public disclosure of the names of 
the account holders in this very special and limited situation of the 
dormant accounts now being investigated as it relates to the Holocaust 
and those dormant assets.
  I believe, Mr. President, that this is important.
  Mr. President, I ask unanimous consent that the letter from me to 
Ambassador Borer and a letter from the Swiss Bankers Association be 
printed in the Record.
  There being no objection, the letters were ordered to be printed in 
the Record, as follows:

                                                  U.S. Senate,

                                   Washington, DC, March 20, 1997.
     Ambassador Thomas G. Borer,
     Federal Department of Foreign Affairs, Bern, Switzerland.
       Dear Ambassador Borer: I am writing to you in connection 
     with the on-going inquiry by the Senate Banking Committee 
     into the fate of assets held by Swiss banks belonging to 
     victims of the Holocaust. As you are aware, among the issues 
     which the Committee has focused its attention on has been the 
     status of dormant accounts which may still exist in Swiss 
     banks. My concern is that the present status of Swiss law 
     inhibits any effective way to ensure the return of these 
     assets to their rightful owners.
       Presently, both the Volcker Commission and the New York 
     State Banking Department are conducting inquiries designed to 
     locate and identify dormant accounts. This of course is in 
     addition to the 1996 survey undertaken by the Swiss Bankers 
     Association and any internal reviews being conducted by the 
     banks themselves. The problem lies in the bank secrecy 
     provisions of the Swiss Federal Banking Law which preclude 
     any effective way to contact the rightful owners of any 
     dormant accounts uncovered through these efforts. For 
     example, if a dormant account belonging to a Holocaust victim 
     is located and that account holder did not name a beneficiary 
     when the account was opened, there is no mechanism in place 
     by which the heirs of that Holocaust victim could receive 
     that which is rightfully theirs. The only way he would be in 
     a position to make a claim to those assets would be if he 
     knew of the existence of the account and the name of the bank 
     in which it is located. Obviously, if the rightful heirs 
     possessed such information, the account would have been 
     claimed long ago. In cases where the account holder did name 
     a beneficiary, it appears that less than diligent steps were 
     taken to locate these beneficiaries. This was made abundantly 
     clear in the case of the 53 accounts turned over to the 
     Polish Government pursuant to the Swiss-Polish Agreement of 
     1949. Notwithstanding the fact that the Swiss government 
     classified these assets as heirless and turned them over to 
     the Polish government, the recent publication of the names 
     this year led

[[Page S3832]]

     to the location of several heirs within days of the 
     publication.
       Although much reliance has been placed upon the role Mr. 
     Hanspeter Hani, the Ombudsman, the fact is that little faith 
     is placed in his office given the results of his searches 
     thus far, as well as the enormous restrictions on what he can 
     do. Although he accepts a fee of one hundred francs, he 
     merely screens the claims and circulates a portion of these 
     names to the banks. Clearly this is not the most effective 
     way to connect dormant accounts with their rightful owners 
     and indeed, the numbers speak for themselves. Despite the 
     fact that well over one thousand claims have been filed with 
     his office, less than one percent have resulted in the return 
     of assets to a claimant. The very justification given by the 
     Swiss Bankers Association for charging the one hundred franc 
     fee was to discourage false claims, this leads to the 
     inescapable conclusion that the claims received by his office 
     are indeed legitimate, but nevertheless, virtually all claims 
     have been rejected. The failure of Mr. Hani's office is but 
     one indicator of the barriers set up by Swiss law which 
     prevent an effective notification system to the owners or 
     heirs of dormant accounts.
       I am writing to you to impress upon you the need for the 
     passage of legislation which would allow for the publication 
     of names of dormant accounts presently held in Swiss banks. I 
     feel that this change would go a long way towards solving 
     this enormously difficult and complicated problem and would 
     equally be seen as a productive step which I am sure would be 
     warmly received.
       Although I am cognizant of the precedent setting concerns 
     of lifting the bank secrecy laws, I'm sure we all agree, the 
     fate of assets placed in Switzerland during the Second World 
     War is a unique situation calling for a unique response. The 
     fact is, these accounts were opened over fifty years ago, so 
     it is hard to imagine that present or potential customers of 
     Swiss banks would be concerned about the publication of this 
     limited group of names. What happened during the Second World 
     War was unparalleled in the history of modern civilization 
     and accordingly exceptional measures are called for.
       The Volcker Commission will soon begin its review and 
     additional dormant accounts will almost certainly be found. 
     Is it really necessary to wait between two and five years for 
     the Commission to complete its work before a decision can be 
     made on how to handle these accounts? Clearly a more 
     effective solution would be to allow for the publication of 
     the account names as they are found so that efforts to locate 
     the rightful owners can begin immediately. New York State 
     presently has such a mechanism in place whereby banks publish 
     the names of dormant accounts which are present on their 
     books. This publication is done through major newspapers and 
     if any owners or potential heirs believe that they are 
     entitled to the contents of a published account, a claim is 
     filed with the bank, which then reviews the claimant's 
     documentation to ensure that it is legitimate. If nobody 
     comes to claim the money, it is turned over to the Office of 
     the Comptroller of the State of New York which handles any 
     future claims and relieves the bank of further liability. It 
     is a fairly simple system which has been in existence for 
     over fifty years and frankly I am not aware of any criticism 
     or problems with it.
       I think we all agree that the manner by which dormant 
     accounts existing in Swiss Banks are to be handled is an 
     issue which will have to be addressed. There is simply no 
     justification for maintaining the veil of secrecy over these 
     accounts. I firmly believe that the only effective way to 
     ensure that the assets are returned to their rightful owners 
     is to publish the names of the dormant accounts holders and 
     that it be done as they are uncovered rather than years from 
     now.
       If you would like to discuss this matter further, please do 
     not hesitate to contact me.
           Sincerely,
                                               Alfonse M. D'Amato,
     U.S. Senator.
                                                                    ____



                                    Swiss Bankers Association,

                                                   April 28, 1997.
     Dr. Kurt Hauri,
     Chairman, Swiss Federal Banking Commission, Bern.
     Re: Publication of names of Holocaust-related dormant 
         account-holders
       Dear Dr. Hauri: In recent weeks, it has been proposed that 
     the names of the holders of accounts opened before 1945 that 
     have been identified as dormant, be disclosed publicly for 
     the purpose of advancing the efforts of the Swiss banks, the 
     Swiss Government, Jewish organizations and others to assist 
     Holocaust victims and their heirs locate their assets. You 
     expressed support for such a proposal on April 22, 1997. As 
     you know, the recent initiative by the Swiss Bankers 
     Association (``SBA'') resulted in the identification of 
     dormant accounts that include accounts that may have belonged 
     to victims of the Holocaust. The Independent Committee of 
     Eminent Persons (the ``Volcker Committee'') is currently in 
     the process of identifying all dormant assets held by Swiss 
     banks that could have belonged to Holocaust victims.
       I am writing to express the SBA's unequivocal support for 
     the concept of public disclosure of the names of account 
     holders in the very special and limited circumstances 
     presented by Holocaust-related dormant assets. It is our hope 
     that, working with the Federal Banking Commission, the Swiss 
     Government and other interested parties, including the 
     Volcker Commission, a mechanism will be implemented soon that 
     will permit such disclosure consistent with Swiss law and 
     sound banking practices.
       When such mechanism is put in place, the names of account 
     holders can be disseminated throughout the world. Public 
     disclosure of the names of account holders Holocaust-related 
     dormant assets is a position that is fully supported by the 
     three largest members of the SBA, Credit Suisse, Swiss Bank 
     Corporation and Union Bank of Switzerland. Each of these 
     institutions have committed to sharing in the costs required 
     to globally publicize a list of account holders names.
       We look forward to discussing this matter with you in the 
     very near future.
           Yours sincerely,
     Dr. Georg F. Krayer,
       Chairman.
     J.P. Chapuis,
       Delegate.

  Mr. D'AMATO. Mr. President, the chairman of the Swiss Bankers 
Association in his letter stated:

       I am writing to express the SBA's unequivocal support for 
     the concept of public disclosure of the names of account 
     holders in the very special and limited circumstances 
     presented by Holocaust-related dormant assets.

  This announcement is a major breakthrough because, for the first 
time, the Swiss bankers will be providing account names on a timely 
basis. We will not have to wait for the completion of the Volcker 
Commission and its report. That investigation may take a period of 
years to be completed. Why should the heirs and those people be 
deprived of a much more expeditious manner to come forward and to 
establish the right to those accounts?
  It is about time this has taken place because this question is one 
that has existed for over 50 years. I am pleased that we are making 
progress. I look forward to continuing in the efforts of attempting to 
see that justice is done, not only as it relates to the dormant 
accounts, but also on the question of the disposition of other assets 
and also in terms of the accountability of assets, of huge amounts of 
gold and other matters that were, I believe, surreptitiously and 
illegally transferred by the Nazis with the aid and assistance of some 
who claimed neutrality.
  But the point of the matter is that this is a significant 
breakthrough. I want to thank Ambassador Borer. I think he is to be 
commended because this is a significant departure and one that is long 
overdue from the past policies that said, ``Oh, no; these are secret 
accounts. They have been opened up that way,'' and then requiring 
people to go through incredibly difficult, if not impossible, proofs, 
requiring them to come up with sums of money that in many cases people 
just do not have. The question of having people, in the past, turned 
back because they did not have a death certificate of a family member 
who died in the death camps--that kind of thing has taken place 
repeatedly over the years.

  It certainly did not bode well for the fiduciary responsibility that 
the banks held up. They were the beacon and the repository of people's 
money, that they could rest at ease that their families would be 
protected and the assets protected. Indeed, the veil of silence worked 
to enrich others at the expense of the legitimate heirs.
  So, for the ambassador to be able to bring about this sea change--
this is a sea change, this is a significant breakthrough. I look 
forward to continuing to work in this area to see to it that the 
publication of these names takes place as quickly as possible so that 
there can be this feeling of closure that many are looking for. It is 
not just the money. It is a question of justice that people are 
seeking.
  Mr. President, I am heartened today by this very significant action 
that the Swiss Bankers Association have pledged. I look forward to 
working with the ambassador and the other representatives of the Swiss 
Government in seeing to it that this matter is dealt with sooner, 
rather than later. This is the commitment that they have made. This is 
a very prestigious, very important group. I hope this can be carried 
out, again, within a matter of days or weeks. Mr. President, 52 years 
is too long to have waited for this to take place. But better now than 
never. It still is, hopefully, the harbinger of better things to come 
in terms of clearing up and getting down to the roots of what has taken 
place.
  I commend the ambassador for this and say that I am very heartened 
because I think this is a tangible success.

[[Page S3833]]

 I also say to the World Jewish Congress and Edgar Bronfman and Israel 
Singer, they are to be commended for never losing faith in continuing 
their effort. Without their persistence, we never would have reached 
the point where we now have a proposal to put $4.7 billion forward in a 
humanitarian fund to be administered by a number of organizations in 
countries that will play a part in determining those people who are 
most in need. That fund would be administered over a period of some 15 
years. Without the World Jewish Congress and its leadership, its 
perseverance, we never would have achieved the results I am speaking to 
today. That is, the publication of the names of those people who had 
dormant accounts, going back to 1945, nor would we have achieved the 
setting up of this humanitarian fund to aid those who are elderly and 
most in need.
  I thank the Chair and I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. FEINGOLD. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. FEINGOLD. Mr. President, I ask unanimous consent to speak as if 
in morning business for 20 minutes.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (The remarks of Mr. Feingold pertaining to the introduction of S. 
Res. 80 are located in today's Record under ``Submission of Concurrent 
and Senate Resolutions.'')

                          ____________________