Ganor v. Attorney General

HCJ 935/89 44(2) PD 485 (1990)

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Ganor v. Attorney General

Israel Supreme Court
HCJ 935/89 44(2) PD 485 (1990)

WW

Facts

Israeli banks encouraged their customers to buy shares in the banks and then provided loans to the customers to facilitate the investment. This led to artificial inflation of the value of bank shares. When investors began to sell their bank shares due to other economic factors, the value of the shares began to plummet, harming investors, and the Israeli government had to step in and purchase the bank shares at a significant cost. The attorney general (defendant) decided not to indict the head bankers and banks who were responsible for the crisis because prosecution would not be in the public interest. The attorney general based his decision on the fact that the bankers had already been subject to administrative sanctions, including being removed from their positions and separated from the banking industry. Several petitioners, including Ganor (plaintiff), sought review of the attorney general’s decision. [Ed.’s note: The portion of the case examining whether the court could review the decision of the attorney general appears in chapter 6 of the casebook. The portion of the case examining the reasonableness of the attorney general’s decision appears in chapter 9 of the casebook.]

Rule of Law

Issue

Holding and Reasoning (Barak, J.)

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