Trade Development Bank
Encyclopedia
Trade Development Bank was a private Geneva
-based bank
built by Edmond Safra
(who also founded Brazil
's sixth largest bank, Banco Safra
) in the 1950s. Beginning with only $1 million, the bank grew into the flagship of Safra’s international banking empire with nearly $5 billion in deposits by the early 1980s. Safra sold the bank for $550 million in 1983 to American Express
.
After the deal, American Express executives grew suspicious about Safra’s rumored links to the Iran-Contra operations and drug money laundering. Given their corporate responsibility for the Trade Development Bank, American Express executives hired private detectives to examine those suspicions, some of which began surfacing in the international press. When Safra learned of the American Express investigation, he ordered counter-investigations of American Express. Safra then sued American Express for defamation. At that point, American Express chose to avert a costly legal battle and limit the negative publicity by agreeing to apologize and donate $8 million to charities of Safra’s choice.
The American Express retreat was big news at the Wall Street Journal and other major newspapers, which portrayed Safra as an innocent man smeared by a business competitor. Thereafter, the image of Safra as victim became the dominant conventional wisdom among U.S. journalists.
Geneva
Geneva In the national languages of Switzerland the city is known as Genf , Ginevra and Genevra is the second-most-populous city in Switzerland and is the most populous city of Romandie, the French-speaking part of Switzerland...
-based bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
built by Edmond Safra
Edmond Safra
Edmond J. Safra was a Jewish Brazilian-naturalized, Lebanese banker who continued the family tradition of banking in Lebanon, Brazil and Switzerland. He married Lily Watkins. He died in a fire that attracted wide media interest and was judicially determined to be due to arson.-Life of Edmond...
(who also founded Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
's sixth largest bank, Banco Safra
Banco Safra
Banco Safra is a Brazilian and international bank, ranking tenth among the country’s largest sector financial institutions in terms of total assets. The Bank is part of the larger Safra Group of banks and financial institutions.-Operations:...
) in the 1950s. Beginning with only $1 million, the bank grew into the flagship of Safra’s international banking empire with nearly $5 billion in deposits by the early 1980s. Safra sold the bank for $550 million in 1983 to American Express
American Express
American Express Company or AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best...
.
After the deal, American Express executives grew suspicious about Safra’s rumored links to the Iran-Contra operations and drug money laundering. Given their corporate responsibility for the Trade Development Bank, American Express executives hired private detectives to examine those suspicions, some of which began surfacing in the international press. When Safra learned of the American Express investigation, he ordered counter-investigations of American Express. Safra then sued American Express for defamation. At that point, American Express chose to avert a costly legal battle and limit the negative publicity by agreeing to apologize and donate $8 million to charities of Safra’s choice.
The American Express retreat was big news at the Wall Street Journal and other major newspapers, which portrayed Safra as an innocent man smeared by a business competitor. Thereafter, the image of Safra as victim became the dominant conventional wisdom among U.S. journalists.