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California, Massachusetts and New York are the three states that had already imposed sanctions.

New York City Comptroller Alan Hevesi, who hosted the conference, spoke against an immediate imposition of sanctions — a stance likewise adopted by U.S. Senate Banking Committee Chairman Alfonse D'Amato (R-N.Y.), who has been one of Switzerland's harshest critics.

The delay until March 31 will give Jewish officials a chance to negotiate a final settlement of all Holocaust-era claims against the banks, according to an official involved in the negotiations.

The so-called "global settlement" could involve a payment of billions of dollars to bring closure to all the issues related to Switzerland's wartime activities, World Jewish Congress President Edgar Bronfman said last week in London during an international conference on Nazi-looted gold.

He added that the Swiss banks owed as much as $2 billion to $3 billion to survivors and their heirs.

A source familiar with the situation confirmed that there indeed had been discussions on a final settlement to satisfy the demands of all Jewish claimants, including dormant account holders and, perhaps, those participating in three class-action lawsuits against the Swiss banks.

At the New York conference, the state and municipal officials gave their informal approval to a moratorium, but some did so grudgingly.

Burton Netarus, a member of the Chicago City Council, said he was "straining at the bit" to act against the Swiss banks.

But he added that he would observe the moratorium before submitting a resolution that Chicago cease depositing any city funds with Swiss banks.

Undersecretary of State Stuart Eizenstat, who spoke at the conference, said the state and local finance officials should stop meddling in U.S. foreign policy with threats of sanctions against the Swiss.

At least one conference attendee said he would not wait until March 31.

Joel Weingarten, a New Jersey Republican assemblyman, said in an interview that he would press ahead with plans to co-sponsor a bill to prohibit the state from investing funds with Swiss financial institutions.

Some of the approximately 50 Holocaust survivors attending the conference were clearly dissatisfied with the moratorium.

Alice Fischer, a survivor of the Bergen-Belsen camp, was outraged that the Swiss had served as the Nazis' bankers and urged immediate action against them.

Among the conference speakers was Ambassador Thomas Borer, who has served as Switzerland's leading trouble-shooter on Holocaust issues.

No other country has "taken comparable measures" to examine its history, he said, adding that the threatened sanctions are "unfair and are coming at a time when we are achieving tangible results."