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Barclays, HSBC Sued By U.S. Soldiers Over Attacks In Iraq

Iraq war veterans and their families are suing five European banks, accusing them of allegedly processing Iranian money that was used to finance attacks against American troops.

Iraq war veterans and their families are suing five European banks, accusing them of allegedly processing Iranian money that was used to finance attacks against American troops. The five banks being sued in the district court in Brooklyn, New York, are HSBC, Barclays, Credit Suisse Group, Standard Chartered and Royal Bank of Scotland Group. Gary Osen, the New Jersey-based lawyer for the plaintiffs said, 'Iran used and continues to use the global banking system to purposefully circumvent U.S. and other sanctions regimes to transfer hundreds of millions of dollars.' In a note to clients, Sandy Chen, an analyst at Cenkos Securities in London, said 'This is a lawsuit that could materially alter the U.S. banking landscape.' He added, 'If these allegations are shown to be true, an avalanche of anti-terrorism legislation would tumble upon these non-U.S. banks' including a 'possible suspension of U.S. banking licenses.' All five banks have been fined by US banking regulators for trying to hide the transactions with Iran.

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