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For immediate release
June 4, 1997
The Federal Reserve Board today announced the issuance
of an Order to Cease and Desist against Michael Quinn, a former
employee of the New York Branch of Swiss Bank Corporation.
Mr. Quinn, without admitting to any allegations,
consented to the issuance of the Order in connection with his
actions, as an employee of the New York Branch, in preparing
allegedly incorrect account records of Swiss Bank Corporation's
Cayman Islands Branch.
A copy of the Order is attached.
Attachment
UNITED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.
--------In the Matter of
Docket No. 97-010-B-1
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MICHAEL QUINN
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A Former InstitutionAffiliated Party of
SWISS BANK CORPORATION
NEW YORK BRANCH
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New York, New York
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Order to Cease and Desist
Issued Upon Consent
Pursuant to the Federal
Deposit Insurance Act,
as Amended
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WHEREAS, pursuant to Sections 8(b) (1) and (4) of the
Federal Deposit Insurance Act, as amended (12 U.S.C.
55 1818(b) (1) & (4)) (the "FDI Act"), the Board of Governors of
the Federal Reserve System
(the "Board of Governors") issues this
Order to Cease and Desist against Michael Quinn ("Quinn"), a
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former officer and institution-affiliated party, as defined in
Sections 3(u) and 8(b) (4) of the FDI Act (12 U.S.C. §§ 1813(u)
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1818(b) (4)). of the New York Branch of Swiss Bank Corporation
('1
SBC" ) , a foreign bank, as a result of Quinn's actions, ag an
employee of the New York Branch, in preparing allegedly incorrect
accounting records for SBC's Cayman Islands Branch; and
WHEREAS, by affixing his signature hereunder, Quinn has
consented to the issuance of this Order by the Board of Governors
and has consented to comply with each and every provision of this
Order, and waived any and all rights he might have pursuant to 12
U.S.C. 5 1818 or 12 C.F.R. Part 263, or otherwise:
(a) to the
issuance of a notice of charges and of hearing;
(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 matter the basis, issuance, validity,
effectiveness, collectibility or enforceability of this Order or
any provision hereof.
NOW,
THEREFORE, prior to the taking of any testimonjj 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 tes,timony:
IT IS HEREBY ORDERED, pursuant to Section 8(b) of the
FDI Act, 12 U.S.C. 1818(b), that:
1.
&inn
shall cease and desist from any acts,.
omissions and practices involving breaches of fiduciary duty and
unsafe or unsound practices in connection with the conduct of the
business of any institution or agency specified in
Section 8(e) (7) (A) of the FDI Act
(12 U.S.C. § 1818(e) (71 (A)),
including, but not limited to, a bank, a branch or agency of a
foreign bank, a bank holding company, or nonbank subsidiary.
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2.
In the event that Quinn becomes an institution-
affiliated party of any institution or agency described in
paragraph 1 hereof, Quinn shall:
(a) Take such actions as are necessary, consistent
with his responsibilities,
to obtain advice of competent legal
counsel to determine his *duties and responsibilities,
both
initially upon accepting such a position and on a continuing
basis when particular
issues arise that may cause Quinn to be
uncertain about his responsibilities;
(b) Remain fully informed on the current status of
all activities within his area of responsibility,
including the
institution's or agency's compliance with its internal policies,
accounting and. /auditing standards, policies and procedures, and
all applicable'laws
and regulations;
(c) Refrain from violating the standards
established by any applicable federal or state statute,
regulation, policy statement,: gylideline or similar pronouncement
by any appropriate
federal or state banking regulator, governing
the safe or sound operation of financial institutions and take
such actions as are necessary and consistent with his
responsibilities
responsibility
to ensure that all operations within his area of
are conducted in a safe and sound manner and
.subject to appropriate supervision by the institution or agency,
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including, but not limited to, making accurate and complete
accounting entries and preparing reports for auditors or
examiners; and
(d) Ensure that any personnel who report to Quinn
are properly supervised to ensure their compliance with all
applicable laws, regulations, or other agency pronouncements.
3.
Ali communications regarding this Order shall
be
addressed to:
(a)
Donald T. Vangel
Executive Vice President
Federal Reserve Bank of New York
33 Liberty Street
New York, New York 10045
(b)
Michael Quinn
125 Nelson Avenue
Jersey City, NJ 07307,
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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
Quinn; provided, however, that the Board of Governors shall not
take further action against Quinn based upon any information
presently known by the Board of Governors concerning the matters
covered by this Order.
5.
This Order, and each and every provision hereof,
is and shall remain fully effective and enforceable until
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expressly stayed, modified, terminated or suspended in writing by
the Board of Governors.
By order of the Board of Governors, effective this
day OfFI
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BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
Michael Quinn
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Secretary of the Board
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