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For
immediate
February
release
The Federal
issuance
with
and Desist
the Asahi
the New
Order
Bank,
The
Money
false
Ltd.
Orders
of the New
York
to bank
obstruction
State
today
Banking
Bank,
the joint
announced
of a Cease
Department
Ltd.,
Tokyo,
Japan,
and
in New York.
issued
were
supervisory
statements
alleged
branch
also
Board
the Asahi
of $5 million
Both
confidential
York
against
Board
Penalty
officers
Reserve
13, 1997
an Order
against
issued
branch
the bank
relating
supervisory
of a Civil
and branch.
for misconduct
information,
of a formal
of Assessment
by certain
to the alleged
to the making
officials,
investigation
misuse
of
of allegedly
and to the
by bank
supervisory
officials.
The Asahi
allegations
made
Bank
against
and branch
them
did not admit
in connection
the Orders.
Copies
Attachments
of the Orders
are attached.
with
to any
the
issuance
of
'UNITED
AMERICA
STATES
OF
BEFORE
THF,
OF GOVERNORS OP TRR FEDERAL
BOARD
RESERVE
SYSTEM
AND
THE NE% YORX STATE BANKING
1
DEPARTMENT
Docket Nos.
In the Matter of
96-023-B-FB
96-023-B-FBR
I
THE ASAHI BANK,
Tokyo. Japan
LT3.
;
)
THE ASAH BANK, LTD.,
NEW YORK BRAWCH
New York, New York
Order to Cease and Desist
Issued Upon Consent
i
WHEREAS, pursuant to Section E(b) (1) of the Federal
Deposit Insurance Act, as amended (the "FDI Act"), (12 U.S.C.
§ 1818(b) (1)).
and
pursuant
to Section
39 of
the New York State
Banking Law ("Banking Law"), the Board of Governors of the
Federal Reserve System (the "Board of Governors") and the
New York State Banking Department ("Banking Department") issue
this Order to Cease and Desist (the "Ordern) against the Asahi
,.a foreign bank, and its
Bank, Ltd., Tokyo, Japan ("AsahiO')
New York branch ("New York Branch"), for misconduct by certain
officers of the New York branch relating to the alleged misuse of
confidential supervisory information, to the making of allegedly
false statements to bank supervisory officials, and to the
alleged obstruction of an investigation; and
WRRREXS, on February 12, 1997, the Board of Directors
of Asahi adopted a resolution: (i) authorizing and directing
Shigehiko Yoshino to enter into this Order on Asahi's behalf;
(ii) authorizing and directing Katsumi Sakai to enter into this
Order on behalf of the New York Branch; (iii1 consenting on
behalf of Asahi, the New York Branch, and Asahi's institutionaffiliated parties, as defined in Sections 3(u) and e(b)(4) of
the FDI Act, to comply with each and every provision of
this
Order; and (iv) waiving any and all rights that Asahi and the
New York Branch may have pursuant to Section 8 of the FDI Act,
12 C.F.R. Part 263, Section 39 of the Banking Law or otherwise
to: (a) the issuance of a notice of charges and of hearing; \b) a
heazing for the purpose of taking evidence with respect to any
matter implied or set forth in this Order; (c) obtain judicial
review of this Order or any provision hereof; and (d) challenge
or contest in any manner the basis, issuance, validity,
effectiveness, or enforceability of this Order or any provision
hereof;
NOW, THEREFORE, prior to the taking of any testimony or
adjudication of or finding on any issue of fact or law herein,
and without this Order constituting an admission of any
allegation made or implied by the Board of Governors or the
Ranking Department in connection with this proceeding and solely
for the purpose
of settlement of this proceeding without
protracted or extended hearings or testimony and pursuant to the
aforesaid resolution:
2
IT
1.
IS
HEREBY ORDRRED.
that:
Asahi, the New York Branch, and their institution-
affiliated parties shall preserve the confidentiality of all
supervisory information belonging to the Board of Governors or
the Banking Department.
2.
Asahi, the New York Branch, and their institution-
affiliated parties shall respond accurately to all inquiries
posed to them by the Board of Governors or the Banking
Department.
3.
Asahi, the New York Branch, and their institution-
affiliated parties shall neither solicit nor
accept confidential
supervisory infdrmation belonging to the Board of Governors or
the Banking Department from any source, including any financial
institution.
4.
Asahi, the New York Branch, and their institution-
affiliated parties shall fully and timely comply with any
investigations conducted by the Board of Governors or the Banking
Department.
5.
Asahi and the New York Branch shall provide
effective training for all their personnel in the United States
in ethics and the United States bank supervisory process,
including the roles and responsibilities of the personnel of
financial institutions in the supervisory process.
This training
shall, at a minimum, highlight: (a) the necessity for candor in
all communications with bank supervisors, especially during bank
examinations; (b) the necessity of maintaining the
3
confidentiality of supervisory information; and (c) the sanctions
possible for non-compliance with the laws and regulations
applicable to personnel of a financial institution.
Asahi and
the New York Branch shall submit to the Federal Reserve Bank of
New York ("New York Fed") and the Banking Department an
acceptable written plan for compliance with the provisions of
this paragraph within 90 day8 of this Order.
6.
Asahi and the New York Branch shall submit reports
on a ,quarterly basis detailing their progress in fulfilling the
objectives of
the written plan, prepared by their regulatory
compliance consultant, to enhance the risk-management,
operational controls, and compliance environment of the New York
Branch.
7.
During the term of this Order, Asahi and the
New York Branch shall comply fully with the plan submitted
pursuant to paragraph 5 hereof, and shall execute the plan
prepared by their regulatory compliance consultant, referenced in
paragraph 6, with all deliberate speed.
Asahi and the New York
Branch shall not amend or rescind these plans without the prior
written approval of the New York Fed and the Banking Department.
8.
The New York Fed and the Banking Department,
acting jointly, may waive or modify the provisions of this Order,
including extending any time periods set forth in this Order.
9.
All communications regarding this Order shall be
directed to:
4
(al
Donald
T. Vangel
Senior Vice President
Federal Reserve Bank of New York
33 Liberty Street
New York, NY 10045
(b) Robert K. McCormick
Deputy Superintendent of Banks
New York State Bankin,gDepartment
2 Rector Street
New York, NY 10006
(c) Katsumi Sakai, General Manager
Asahi Bank, Ltd., New York branch
One world Trade Center. Suite 6011
New York, NY 10048-0476
10.
The provisions of this Order shall be binding upon
Asahi. the New York Branch, and each of their institutionaffiliated parties, in their capacities as such, and their
successors and assigns.
11.
Each provision of this Order shall remain
effective and enforceable until stayed, modified, terminated, or
suspended by the Board of Governors and the Banking Department.
12.
The provisions of this Order shall not bar, estop
or otherwise prevent the Board of Governors, the Banking
Department, or any federal or state agency or department from
taking any other action affecting Asahi, the New York Branch, or
any of their current or former institution-affiliated parties.
Asahi and the New York Branch agree and acknowledge that this
Order does not bar or estop any criminal charges or prosecutions
against them, and Asahi and the New York Branch hereby waive any
claim in any criminal proceeding that this Order constitutes a
penalty, punishment, or criminal sanction, precluding a criminal
5
proceeding under the Double Jeopardy Clause of the Fifth
Amendment to the United States Constitution.
By order of the Board of Governors of the Federal
Reserve System, and
of
effective this z5day
THE ASAHI SANK,
Tokyo, Japan
the New York State Banking Department,
of February, 1997.
LTD.
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
/
/
By: &&!A
William W. Wiles
Secretary of the Board
ASAHI BANK, LTD.
NEW YORK BRANCH
NEW YORK STATE
BANKING DEPARTMENT
BvL&
General
manager
Deputy Superintendent
of Banks
6
UNITED STATES OF AXERICA
BEFORE THE BOARD OF
GOVRRNORS OF THR
FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.
Docket Nos.
In the Matter
THEASAHI
96-023-CMP-FB
96-023-CMP-FBR
of
BANK, LTD.
,’
Tokyo, Japan
;
THE ASAHI BANK,
of a
Issued
Upon Consent Pursuant to the
LTD.,
NEW YORE BRANCH
i
New York, New York
1
WBRREAS.
Order of Assessment
Civil Money Penalty
pursuant
Federal Deposit
as Amended
to Section
Insurance
Act,
8(i) of the Federal
Deposit Insurance Act, as amended (the "FDI Act"),
(12 U.S.C.
5 1818(i)), the Board of Governors of the Federal Reserve System
(the "Board of Governors") issues this Order of Assessment of a
Civil Money Penalty (the "Order") against the Asahi Bank, Ltd.,
Tokyo, Japan ("Asahi"), a foreign bank, and its New York branch
("New York Branch"),
New York branch
supervisory
statements
for misconduct
relating
information,
of the
by certain officers
to the alleged misuse
to the making of
to federal bank supervisory
of
confidential
allegedly
officials,
false
and to the
alleged obstruction of a Federal Reserve investigation;
WBBBRAS,
Asahi
adopted
Shigehiko
12, 1997. the Executive
a resolution: (i) authorizing
Yoehino
(ii) authorizing
and directing
Katsumi
the New York Branch;
Board
of
and directing
to enter into this Order on Asahi's
Order on behalf of
behalf
on February
and
behalf;
Sakai to enter into this
(iii) consenting
on
of Asahi and the New York Branch to comply with each and
every provision of this Order; and (iv1 waiving any and all
rights that Asahi and the New York Branch may have pursuant to
Section 8 of the FDI Act and 12 C.F.R. Part 263 or otherwise to:
(a) the issuance of a notice of assessment of a civil money
penalty; (b) a hearing for the purpose of taking evidence with
respect to any matter implied
or
set forth in this Order;
(c) obtain judicial review of this Order or any provision hereof;
and (d) challenge or contest in
any
manner the basis, issuance,
validity, effectiveness, collectibility or enforceability of this
Order or any provision hereof;
NOW, TEEREPORE, prior to the taking of
any
testimony or
adjudication of or finding on any issue of fact or law herein,
and without this Order constituting an admission of any
allegation made or implied by the Board of Governors in
connection with this proceeding and solely for the purpose of
settlement of this proceeding without protracted or extended
hearings or testimony and pursuant to the aforesaid resolution:
IT IS EEREBY ORDERED,
I..
that:
Asahi and the New York Branch are hereby assessed
and shall pay, in settlement of these proceedings, a civil money
penalty in the amount of $5 million.
This amount shall be
remitted in full at the time of the execution of this Order by
wire transfer of immediately available funds to the Federal
ReseNe
Bank of New York, ABA No. 023001208, to the attention of
Thomas C. Baxter, Jr., Executive Vice President and General
Counsel.
The Federal Reserve
Bank
2
of New York, on behalf of the
Board of Governors,
shall distribute this sum to the
United States Department of the Treasu-ry,pursuant to
Section S(i) of the FDI Act.
2.
All communications regarding this Order shall be
directed to:
(a) Donald T. Vangel
Senior Vice President
Federal Reserve Bank of New York
33 Liberty Street
New York, NY 10045
(b) Katsumi Sakai, General Manager
Asahi Bank, Ltd., New York branch
One World Trade Center, Suite 6011
New York, NY 10048-0476
3.
The provisions of this Order shall be binding upon
Asahi, the New York Branch, and their successors and assigns.
4.
The provisions of this Order shall not bar, estop
or otherwise prevent the Board of Governors or any federal or
state agency or department from taking any other action affecting
Asahi, the New York Branch, or any of their current or former
institution-affiliated parties, as defined in Sections 3(u) and
S(b) 14) of the FDI Act; provided, however, that the Board of
Governors shall not take any further action against Asahi or the
New York Branch based upon information presently known by the
Board of Governors relating to the matters addressed by this
Order; provided further, that the Board of Governors is not
barred, estopped or otherwise prevented from taking action under
Section 8 of the FDI Act for
any
violation of, or noncompliance
with, this Order; provided further, that Asahi and the New York
Branch agree and acknowledge that this order, and the payment
3
made herewith, does not bar or estop any criminal charges or
prosecutions against them, and Asahi and the New York Branch
hereby waive any claim in any criminal proceeding that this
Order. and the payment
made
herewith, constitute a penalty,
punishment, or criminal sanction, precluding a
criminal
proceeding under the Double Jeopardy Clause of the Fifth
Amendment to the United States Constitution.
By order of the Board of Governors of the Federal
Reserve System, effective this may
of February, 1997.
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
THE ASAHI BANX, LTD.
Tokyo, Japan
w
.m
By:
By:
Secretary
THE ASAHI BANK, LTD.,
NEW YORK BRANCH
By:e
General Manager
4
of the Board