Fed, BCCI Discuss Independence Pact: The Federal...

Fed, BCCI Discuss Independence Pact: The Federal Reserve is negotiating an agreement with the Bank of Credit and Commerce International, a secretive international bank, under which BCCI would divest any shares it may control in Independence Bank in Encino, according to a source familiar with the talks. Last month, the Fed said it had not yet determined whether there were such ties between Independence and BCCI, which last year pleaded guilty in federal court to money laundering. Independence’s chairman, Fulvio V. Dobrich, denied any links between the banks. Dobrich added, however, that BCCI acted as an adviser to Saudi Arabian financier Ghaith R. Pharaon when he bought Independence in 1985. He also said Pharaon keeps his shares in Independence in a custody account at BCCI’s London branch.