House Bill Punishing Companies for Iranian Investments Targets Loan Portfolios of International Banks

By Brian Monroe

Financial institutions and other companies that support the Islamic Republic's energy sector face new pressure under the terms of a bill passed by the U.S. House of Representatives Wednesday. Sponsored by Massachusetts Democrat Barney Frank and nearly 260 legislators on both sides of the aisle, the bill indemnifies state and local investment pools, as well as public and private funds if they divest themselves of holdings in entities that have investments of at least $20 million in Iran's energy sector. As a result, international banks will need to scrutinize their portfolios and sever any financial ties they have with Iran...