MOYNIHAN: US FOILED SOVIET'S BANK PLOT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000404440030-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: June 29, 2010
• Sequence Number: 30
• Publication Date: February 17, 1986
• Content Type: OPEN SOURCE

Y
Sanitized Copy Approved for Release 2010/06/29: CIA-RDP90-00552R000404440030-4
ARTICLE APPEARED
ON PAGE .__
Moynihan:
US foiled
Soviet's
bank plot
BOSTON GLOBE
17 February 1986
By Henry David Rosso
United Press International
WASHINGTON - US intelli-
gence uncovered and foiled a Sovi-
et scheme in the late 1970s to ob-
tain high-technology secrets by
taking controo American banks.
Sen. Daniel Moynihan (D-N.Y.)
said yester av.
Moynihan said in a telephone
interview he did not know the
identities of the principals in-
volved, but The New York Times
reported yesterday the Soviet
scheme was to take over three
Northern California banks - a
plan that did not violate any US
law.
The Times identified the banks
as Peninsula National Bank in
Burlingame. First National Bank
of Fresno and the Tahoe National
Bank in South Lake Tahoe. The
Soviets also tried to gain partial
interest in Camino California
Bank in San Francisco, the news-
paper reported.
Moynihan, a member of the
Senate Intelligence Committee for
nine years and the panel's vice
chairman between 1981 and
1985. said a CIA agent, noticing a
necullar lending patternbv the
Singapore branch of a Soviet
bank in the late 1970s. uncovered
the plot.
The Times also reported the
plan was squelched after the Sovi
ets made a $1.8 million down pay-
ment on the three banks.
Moynihan said the Soviets
were attempting to take over the
banks to get the opportunity to re-
view blueprints and other plans
for secret high-technology projects
when reviewing business loan ap-
plications.
Peninsula National Bank, In
particular. made numerous loans
to high-tech firms In addition.
Peninsula National and the other
banks had loaned money to em-,
ployees and executives of high-
tech firms, the Times said.
Moynihan said there is nothing
illegal about the scheme, but he
plans to introduce legislation that
would require disclosure of owner-
ship of banks.
Sanitized Copy Approved for Release 2010/06/29: CIA-RDP90-00552R000404440030-4