Credit Lyonnais Accused

Waxman cited press reports that Lyonnais had lobbied the Bush administration and declared that 'it's impossible to know what substantive impact Credit Lyonnais' efforts are having inside the Justice Department.'

Executive Life was one of the largest life insurance companies in the United States when it was seized by the California Insurance Commissioner in April 1991. The business was in dire financial trouble.

A lawsuit now alleges that a group of investors led by Altus Finance, an investment subsidiary of Credit Lyonnais, contracted secretly in August 1991 with troubled auto insurer MAAF and other companies to act as 'fronts' to conceal the bank's true involvement in the purchase of Executive's assets.

The bank has been accused of orchestrating 'a sham (purchase arrangement) designed to deceive the state, the Commissioner, the Court and other bidders.' The lawsuit asserts that Credit Lyonnais acted in breach of federal banking laws.

After taking over Executive, the French bank sold the insurers bond portfolio and has been accused by members of US Congress of making a profit of around $2.5bn.