[Avodah] prozbul & heter iska

[Arie Folger]

On Wednesday, 21. May 2008 01.06:49 avodah-request at lists.aishdas.org wrote:
> I believe the secular courts ruled in favor of the banks. How we continue
> using the same heter iska is a good question
>
> any israeli lawyers in the crowd?

IIRC this was against Bank Leumi, and the court ruled against the banks, but 
on different grounds: the banks had aggressively sold stock market 
investments IIUC on margin to avreikhim who provided their homes as 
collateral. Then, when the markets crashed, they asked the hetter isqa to be 
used as a basis for sharing in the losses. The court reprimanded the bank - 
and indirectly, also other banks - that had inappropriately and excessively 
aggressively sold these investment products to unknowing consumers.

Source: a shiur by Rab Bleich when I was in RIETS.

-- 
Arie Folger
http://www.ariefolger.googlepages.com