Bank Leumi, Isreal’s second biggest bank, has acquired Riggs Bank & Trust (Channel Islands) Ltd for $25 million. In addition, Bank Leumi...

Bank Leumi, Isreal’s second biggest bank, has acquired Riggs Bank & Trust (Channel Islands) Ltd for $25 million. In addition, Bank Leumi UK subsidiary, agreed to acquire credit and deposit portfolios from Riggs Bank’s branch in London for about $12 million, Bank Leumi said in a statement. Leumi said the acquisitions include deposits and investments from clients worth $120 million, a credit portfolio of $165 million and a portfolio of trusts worth $430 million. The Israeli bank said the purchase is part of its strategy of substantially expanding its international activities. The acquired assets will be merged with Leumi's current activities in Jersey, thereby expanding its client base as well as its deposits, investments, credit and trust business. Last week Riggs pleaded guilty in the US to repeatedly failing to report suspicious transactions in bank accounts held by a number of controversial political figures. The Washington-based bank agreed to pay a $16 million penalty. Riggs was bought by PNC Financial last July, although the deal could still be affected by the recent court case. PNC said it would make a statement on the deal in early February. Bank Leumi was not prepared to comment on whether last week’s court decision influenced the price paid for the acquisitions.