Report: Lebanese-Canadian Bank to be Sold for $500-600 Million

The Lebanese-Canadian Bank will be sold soon following U.S. accusations that LCB was laundering hundreds of millions of dollars in drug profits for a cocaine smuggling organization with ties to Hizbullah, An Nahar daily reported Wednesday.

The newspaper said that the Central Bank’s assurance of finding a solution to the crisis will be interpreted in the sale of the bank for 500-600 million dollars.

The U.S. Treasury Department has said that any financial institution that collaborates in illicit conduct on this scale risks losing its access to the United States.

Banking sources told An Nahar that the LCB management is in direct negotiations with four banks that have expressed interest in buying the institution without the mediation of the Central Bank.

“This settlement is the most suitable given that the issue is linked to the reputation of the sector and its credibility,” banking expert Ghazi Wazni said.

Copyright © 2012 All Rights Reserved.