Thursday, 13 January 2011

UNFCU - the U.N. Bank to step in to "fill the void" created by CHASE and other U.S. Banks decision

latest decision by US Banks like Chase Manhattan not to do business with Diplomats and their Missions in New York and Washington DC, has led the board of UNFCU to turn their heads into the new lucrative business - that of Diplomatic Banking.

As one staffer of UNFCU phrased it: " once you get those accounts on board you're pretty much untouchable..".

Well the reason behind CHASE's decision was:

J.P. Morgan Chase to end services for diplomats; other banks ready to follow

... The Obama administration has said it has no authority to require private commercial entities to do business with foreign banks. But under a 1947 U.N. agreement, the United States, as the United Nations' host country, is obliged to ensure that foreign missions have access to "necessary public services."

Kennedy said the State Department is trying to persuade banks that have cut off service to diplomats to reconsider their decision and to persuade other banks to get into the business. From WashingtonPost

So now the UNFCU - which should have focused its mandate in providing quality services for UN staffers and their earnings/savings, now want to venture in areas that could potentially lead to major legal implications with the host country(s).

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