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For immediate release
January 6, 1997
The Federal Reserve Board today announced the issuance
of an Order to Cease and Desist against Brian Gager, a former
foreign exchange trader and institution-affiliated
party of the
New York Branch of The Nippon Credit Bank, Ltd., Tokyo, Japan.
Mr. Gager, without admitting to any allegations,
consented to the issuance of the Order in connection with his
alleged improper trading activities.
A copy of the Order is attached.
Attachment
UNITED STATES OF AMERICA
BEFORE TEE BOARD
OF GOVERNORS OF THE
WASHINGTON.
FEDERAL
RESERVE
SYSTEM
D-C!.
_-_--___-__--__---_x
In the Matter of
)
Docket No. 96-025-B-I
)
BRIAN GAGER
1
1
A Former Institution-Affiliated
Party of the New York Branch
of
)
)
)
)
THE NIPPON CREDIT BANK, LTD.
Tokyo, Japan
Order to Cease and
Desist Issued
Upon Consent Pursuant
to the Federal
Deposit Insurance Act,
As Amended
)
)
)
------___-_-___----~
WHEREAS, pursuant to Sections B(b) and (i) (3) of the
Federal Deposit Insurance Act, as amended
(the "FDI Act!')
(12 U.S.C. §§ 1618(b) and (i) (311, the Board of Governors of the
Federal Reserve System
(the "Board of Governors") issues this
Order to Cease and Desist
(the "Order") against Brian Gager
("Gager") , a former foreign exchange trader and institutionaffiliated party, as defined in Sections 3(u) and B(b) (4) of the
FDI Act
(12 U.S.C. §§ 1813(u) and 1818(b) (4)). of the New York
branch of the Nippon Credit Bank, Ltd., Tokyo, Japan
("Nippon-NY"), based on Gager's alleged improper trading
activities;
and
WHEREAS, by affixing his signature hereunder, Gager has
consented to the issuance of this Order by the Board of
Governors, has agreed to comply with each and every provision of
this Order, and has waived any and all rights he might otherwise
have pursuant to 12 U.S.C. § 1818 or 12 C.F.R. Part 263, or
otherwise
hearing;
(a) to the issuance of a notice of charges and of
(b) to a hearing for the purpose of taking evidence with
respect to any matter implied or set forth in this Order;
(c) to
obtain judicial review of this Order or any provision hereof; and
(d) to 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 implied or
set forth herein, and without this Order constituting an
admission by Gager of any allegation made or implied by the Board
of Governors in connection herewith, and solely for the purpose
of settlement of this matter, without protracted or extended
proceedings:
2
IT IS HEREBY ORDERED, pursuant to Sections 8(b) and
(i) (3) of the FDI Act, that:
1.
Upon becoming an institution-affiliated
party, as
defined in Sections 3(u) and 8(b) (3) and (4) of the FDI Act, of
any institution or agency specified in Section 8(e) (7) (A) of the
FDI Act
(12 U.S.C. 5 1818(e) (7) (A)), including, but not limited
to, any insured depository institution, bank or thrift holding
company, or U.S. agency or branch of a foreign bank, where his
duties include, directly or indirectly, engaging in, managing or
otherwise directing the trading activities of any such
institution or agency, Gager shall take such actions as are
necessary,
he will
consistent with his responsibilities,
to ensure that
(a) comply with all policies and procedures of his
employer as they pertain to such trading activities, including,
where applicable, the preparation and maintenance of accurate
books and records,
(b) engage in trading activities in a manner
that is consistent with his fiduciary duties and with safe and
sound banking practices, and (c) comply fully with all applicable
laws and regulations.
2.
All communications regarding this Order shall be
addressed to:
(a)
Mr. Donald T. Vangel
3
Senior Vice President
The Federal Reserve Bank
of New York
59 Maiden Lane, 10th Floor
New York, NY 10045
(b)
3.
Mr. Brian Gager
824 Forest Avenue
10580
Rye, NY
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
Nippon-NY, Gager, or any current or former institution-affiliated
party of Nippon-NY.
4.
This Order, and each and every provision hereof,
is and shall remain fully effective and enforceable until
expressly stayed, modified, terminated or suspended in writing by
the Board of Governors,
By order of the Board of Governors zfective
this
&!A
day of
JJtid~r;/
,19$.
ds3. -
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
5