Case 203 - Money and Politics: The Iranian Asset Freeze

Lissakers, Karin

This case study deals with the use of financial embargoes as a foreign policy tool. Focusing on the 1979-1981 Iranian hostage crisis that led to the U.S. government’s freezing of Iranian deposits in foreign banks, the case illustrates the tight link between global finance and government policy, and explores the intricate legal, regulatory, and political parameters within which international commercial banks operate. This case study is primarily designed for use in classes on international banking, financial policies, or political economy.