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June 3, 1997
For immediate release
The Federal Reserve Board today announced the issuance
of an Order of Prohibition against Donald G. Austin, a former
employee and institution-affiliated
party of The Bank of New
York, New York, New York.
Mr. Austin, without admitting to any allegations,
consented to the issuance of the Order due to his alleged making
of unauthorized
loans.
A copy of the Order is attached.
Attachment
UNITED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, DC
_______-__-_
Docket No. 97-007-E-I
In the Matter of
Order of Prohibition
Issued Upon Consent
Pursuant to the Federal
Deposit Insurance Act,
as Amended
DONALD G. AUSTIN
A Former Employee and
Institution-Affiliated
Party of
THE BANK OF NEW YORK
New York, New York
WHEREAS, pursuant to sections 8(e) and 8(i) (3) of the
Federal Deposit Insurance Act, as amended (the ‘Act") (12 U.S.C.
1818(e) and (i) (3)!),the Board of Governors of the Federal
Reserve System
Prohibition
(the "Board of Governors") issues this Order of
(the "Order") against Donald G. Austin
former employee and institution-affiliated
section 3(u) of the Act
('Austin"),
party, as defined in
(12 U.S.C. 1813(u)), of The Bank of New
York, New York, New York, a statemember bank, due to Austin's
alleged making of unauthorized
loans; and
a
WHEREAS,
on May 14, 1997, Austin pled guilty in the
U.S. District Court for the Southern District of New York
to violating Title 18 of the United States Code Section 1344
(18 U.S.C. § 1344); and
WREREAS, by affixing his signature hereunder, Austin
has consented to the issuance of this Order by the Board of
Governors and has waived any and all rights he might otherwise
have pursuant to 12 U.S.C. 1818 or 12 CFR Part 263, or otherwise;
(a) to the issuance of a notice of intent to prohibit;
(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,
terms, effectiveness or enforceability of this Order or any
provision hereof. '
NOW, T?iEREFORE, before the taking of any testimony or
adjudication
of or finding on any issue of fact or law herein;
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;
IT IS HEREBY ORDERED, pursuant to sections 8(e),
(i) (3)
and (j) of the Act (12 U.S.C. 1818(e), (i) (3) and (j)), that:
1. Austin, without the prior written approval of the
Board of Governors and, where necessary pursuant to
section 8(e)(7) (B) of the Act
(12 U.S.C. 1818(e) (7) (B)), another
federal financial institution regulatory agency, is hereby and
henceforth prohibited from:
(a) Participating in any manner in the conduct of
the affairs of any institution or agency specified in section
(8)(e) (7) (A) of the Act
(12 U.S.C. 1818(e) (7) (A)), including
without limitation, any insured depository institution, or any
bank or savings association holding company or nonbank subsidiary
thereof or any:U.S. branch or agency of a foreign bank;
(b) soliciting, procuring, transferring,
attempting to transfer, voting or attempting to vote any proxy,
consent, or authorization with respect to any voting rights in
any institution described in section 8(e) (7) (A) of the Act;
(c) violating any voting agreement previously
approved by any federal banking agency; or
(d) voting for a director, or serving as an
institution-affiliated
party, such as an officer, director or
employee, of any institution described in section 8(e)(7) (A) of
the Act.
2.
Any violation of this Order shall separately
subject Austin to appropriate criminal or civil penalties or both
under section 8 of the Act
3.
(12 U.S.C. 1818).
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.
4.
All communications regarding this Order shall
addressed to:
(a) Mr. William Rutledge
Senior Vice President
Federal Reserve Bank of New York
33 Liberty Street
New York, NY 10045
(b) Mr. Donald G. Austin
139 Ramona Court
Rochelle, NY 10804
5.
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
Austin.
By order
day of
flJ,Y
of the Board
of Governors
effective
this
, 1997.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
By:
William W. Wiles
Secretary
of the Board
5