Taking away the right of someone to invest in securities in your local country of residence because of fear of a foreign government's laws which are NOT applicable in your local country overstep the boundaries of a violation of one's civil liberties and rights - especially in a country like Israel that is trying to promote financial freedom. Israel's financial system is well regulated. And perhaps instead of removing one's rights to invest, perhaps the banks should simply be asked to report an American client's account to the IRS.
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Clashes between IDF and Palestinians in Joseph's Tomb after Jews pray at site; none hurt (Haaretz)
from the article: Israeli banks urge America clients to close Israeli accounts