Calif. Congressman Makes Statement on Credit Lyonnais Settlement Deadline

October 16, 2003

Congressman Doug Ose (R-Sacramento) made the following statement on the deadline day for the proposed settlement between the U.S. Department of Justice and Credit Lyonnais.

“The time for discussion and negotiation has come and gone. Clever words and fancy footwork by the French government and a number of French citizens cannot hide the fact that they broke the law and in the process bilked thousands of American policyholders in the Executive Life scandal. Those who are responsible must be held accountable for their actions. Further delay is unacceptable for the innocent victims who must be compensated for this injustice.

“If the French government rejects the generous deal offered by the Justice Department, I urge U.S. Attorney Debra Yang to immediately open sealed indictments and bring this case to trial. I also urge the Federal Reserve to immediately review Credit Lyonnais’ ability to hold a banking license in the United States. The Administration should not accept a compromise.”

Ose has played an active role in the case of Credit Lyonnais. As a member of the House Government Reform Committee, he led a Congressional hearing on this matter in 2002. Ose has sent letters to the Department of Justice and the Federal Reserve seeking to expedite the Credit Lyonnais case. The most recent letter was sent to Secretary John Ashcroft on Sept. 11, 2003, after reports that both sides were discussing a settlement.

There are an estimated 300,000 policyholders who had their life insurance policies reduced as a result of the Executive Life fiasco, most of which live in the State of California. Ose, a representative from Sacramento, has advocated that any settlements must first address the $10.5 billions in assets owed to Executive Life policyholders by Credit Lyonnais.

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