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For

immediate

release

May

The Federal
of ap. Order

to Cease

assistant

loan

Hang

Bank,

New

Seng
York,

lending

Board

and Desist

officer

and

today

against

Kwai

of Marine

the

Por Au,

institution-affiliated

iJ.S.A., Division

Au. without

issuance

admitting

Midland

issuance

a former

party

of the

Bank,

of the Order

based

to any allegations,
on his

activities.
A copy

Attachment

announced

New York.
Mr.

to the

Reserve

16, 1997

of the Order

is attached.

alleged

consented

improper

UNITED
BEFORE

THE

BOARD

OF

OF

STATES

GOVERNORS

AMERICA

OF THE

WASHINGTON,

FEDERAL

RESERVE

SYSTEM

D.C.

x

In the Matter
KWAI

Docket

of
;
)
)

POR AU

A ?ormer Officer and InsitutionAffiliated
Party of
HANG SENG BANK, U.S.A.,
DIVISION
OF MARINE MIDLAND
New York, New York

Federal

Deposit

(12 U.S.C.
Federal
Order

§§ 1818(b)

Reserve
to Cease

former

of sang

New

lending

Sank,

York

WHEREAS,
to the

Governors,
this

Order,

U.S.A.,

("Hang

activities;

consented

1
x

to Sections
Act,

6(b)

as amended

(i) (3)), the

and

(the

Board

(i) (3) of the

"FDI Act")

of Governors

against

issues
Kwai

Division

(12 U.S.C.

of Marine

based

on Au's

this
a

party,
§ 1813(u!),

Midland
alleged

of the

Por Au,

institution-affiliated

of the FDI Act

Seng"),

and

of Governors")

(the "Order")

loan officer
3!u)

Order to Cease and
Desist Issued
,Consent Pursuant
to the Federal
Upon
Deposit Insurance Act,
As Amended

i
)
)

(the "Board

and Desist

in Section

Seng

and

System

assistant

as defined

York,

Insurance

97-011-B-I

BANK

pursuant

WHEREAS,

No.

Bank,

New

improper

and

by affixing
issuance

has agreed

of this

to comply

and has waived

his signature
Order

with

any and

hereunder,

by the Board

each

and

all rights

every

Au has

of
provision

he might

of

otherwise

have

to 12 U.S.C.

pursuant

otherwise

(a) to the

issuance

(b! to a hearing

iearing;
respect

to any matter

obtainjudicial

review

(d) to challenge

effectiveness

provision

hereof.

NOW,
adjudication
forth

implied

or enforceability

of or finding
and

by Au of any

allegation

Governors

in connection

herewith,

settlement

of this

matter,

made
and

without

evidence
Order;

of this

Order

or any

or law

or

implied

or

an

by the

Board

for the purpose

protracted

and

testimony

constituting

solely

cc; to

issuance,

of any

or implied

with

hereof;

the basis,

of fact

this Order

admission

in this

or

and of

cf taking

to the taking

on any issue

without

263,

or any provision

in any manner

prior

Part

of charges

or set forth

of this Order

THEREFORE,

herein,

of a notice

for the purpose

or contest

validity,

set

§ 1818 or 12 C.F.R.

of

of

or extended

proceedings:

1,

25

2,

IT IS HEREBY

ORDERED,

the FD; Act,

that:

1.

any

Upon

institution

or agency

FDI Act

(12 U.S.C.

to, any

insured

company,
take

such

or U.S.
actions

responsibilities,

becoming

pursuant

to Sections

an institution-affiliated

specified

in Section

§ 1818(e) (71 (A)), including,

depository
agency

institution,

or branch

bank

consistent

that he will
2

and

party

of

8(e) (7) (A) of the
but

not

or thrift

of a foreign

as are necessary,
to ensure

8(b)

bank,
with

(a) comply

limited
holding

Au

shall

his
with

all

po:icies

and

ool~cies

ar.d procedures

(b; engage
with

his

of his

procedures

ir. lending

fiduciary
and

practices,

employer,

pertaining
activities

duties

(c) comply

to the lendins

safe

with

those

f~z.ztisn,

in a mar.ner ta-_

and with
fully

carzicxlarly

is consistent

and sound

baE:king

all applicable

laws

and

regulations
~11

2.
addressed

communications

(a)

Mr. Donald T. Vangel
Senior Vice President
The Federal Reserve Bank
of New York
59 Maiden Lane, 10th Floor
10045
New York, NY

(b)

Mr. Kwai Por Au
69 71st Street
Brooklyn,
NY 11209

The provisions

or otherwise

prevent

state

or department

agency
Seng,

party

Au,

of Hang
4.

is and

this

Order

shall

be

to:

3.

Hang

regarding

shall

of this

the Board

or any

of Governors

from

current

Order

taking

or former

shall

not

or any

any other

bar,

federal

action

estop,
or

affecting

institution-affiliated

Seng
This
remain

Order,
fully

and each
effective

3

and evex-y provision
and enforceable

hereof,

until

expressly

stayed,

modified,

t-e 3card

of C-c?~ernors.

By order
this

/qt;)ay

of

terminated

of the Board

or suspended

of Governors
,

in writing

effective

1997.

BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM

C./&T-hy:tiZY4 dQ-William W. Wiles
Secretary
of the Board

by