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UNITED STATES OF AMERICA
BEFORE THE BOARD OF G0VERNOF:S OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.
......................................................
X
In. the Matter of
Docket No. 05-029-E-I
HANSPETER WALDER
Order of Prohibition
Issued Upon Consent
Pursuant to the Federal
Deposit Insurance Act,
as Amended
A Former
Institution-Affiliated Party of
the New Y ork, New Y ork branch of
UBS AG,
Zurich, Switzerland
-----------------------------------------------------X
WHEREAS, pursuant to Sections 8(e) and (i)(3) of the Federal Deposit
Insurance Act, as amended (the "FDI Act") (12 U.S.C. 5 5 1818(e) and (i)(3)), the Board
of Governors of the Federal Reserve Systenn (the "Board of Governors") issues this
consent Order of Prohibition (the "Order") against Hanspeter Walder ("Walder"), a
former employee and institution-affiliated party, as defined in Sections 3(u) and 8(b)(4)
ofthe FDI Act (12 U.S.C. $5 1813(u) and 1818(b)(4)), ofthe New York, New York
branch of UBS AG CUBS"), a foreign banlc, headquartered in Zurich, Switzerland,
operating in the United States, relating to Wallder's violations of law, unsafe and unsound
banking practices, and breaches of fiduciary duties to LJBS and its customers in
connection with his embezzJement of at least $70 million for his personal use, in
violation of 18 U.S.C.
$5 656 and 2; and
WHEREAS, Walder was charged in a criminal information, dated
August 1, 2002, filed in the United States District Court for the Southern District of
New York, with sixteen charges of embezzlement by a bank officer in violation of
18 U.S.C. $3 656 and 2, and pled guilty to these charges; and
WHEREASl, the United States District Court for the Southern District of
New York has entered a judgment requiring Walder to make restitution of more than
$#70million to UBS, and to consent to a lifetime ban from banking if asked to do so by
t11e Board of Governors; arid
WHEREAS', by affixing his; signature hereunder, Walder has consented to
the issuance of this Order by the Board of {Governorsand has agreed to comply with each
and every provision of this Order, and has waived any and all rights he may have
pursuant to 12 U.S.C. $ 1818 or 12 C.F.R. Part 263, or otherwise (a) to the issuance of a
notice of intent to prohibit on any matter set forth in this Order; (b) to a hearing for the
plurpose 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, terms, 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 Walder of any allegation made or implied by the
E3oard of Governors in connection with this proceeding, and solely for the purpose of
settlement of this matter without protracted or extended hearings or testimony:
IT IS HEREBY ORDERED, pursuant to Section 8(e) of the FDI Act (12
1J.S.C. 9 1818(e)), that:
1.
Walder, without the prior written approval of the Board of
(3overnors and, where necessary pursuant to Section 8(e)(7)(B) of the FDI Act (12 U.S.C.
$? 1818(e)(7)(B)), the appropriate Federal financial institutions regulatory agency, is
hereby and henceforth prohibited:
a.
from participating in any manner in the conduct of the affairs of
any institution or agency specified in Section 8(e)(7)(A) of the FDI Act (12 U.S.C.
4 1818(e)(7)(A)), including, but not limited to, any depository institution or depository
institution holding company;
b.
from 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 FDI Act (12 U.S.C.
3 1818(e)(7)(A));
c.
from violating any voting agreement previously approved by any
Federal banlung agency; or
d.
from voting for a director, or serving or acting as an institution-
a~ffiliatedparty, such as an officer, director or employee in any institution described in
Section 8(e)(7)(A) of the ED1 Act (12 U.S.C.
9 1818(e)(7)(A)).
2.
All communications :regardingthis Order shall be addressed to:
a. Sarah1 J. Dahlgren
Senior Vice President
Federal Reserve Banlk of New York
33 Liberty Street
New York, NY 10045
and a copy to:
Michele Kalstein
Counsel
Federal Reserve Badk of New York
33 Liberty Street
New York, NY 10045
b. Hanspeter Walder
5091.3-054 [G-B]
FSL :EIkton
P.O. Box 10
Lisbon, OH 44432-00 10
3.
Any violation of this Order shall separately subject Walder to
appropriate civil or criminal penalties, or bo-th,under Sections 8(i) and fi) of the FDI Act
(12 U.S.C. $5 1818(i) and fi)).
4.
The provisions of this Order shall not bar, estop, or otherwise
prevent the Board of Governors, or ariy other federal or state agency or department, from
taking any other action affecting Walder, provided, however, that the Board of Governors
shall not take any further action against Wz~lderbased upon information presently known
by the Board of Governors relating to the matters addressed by this Order.
5.
Each provision. of this Order shall remain fully effective and
enforceable until expressly stayed, modified, terminated or suspended in writing by the
EIoard of Governors.
-
t ~ By
, order of the Board of Governors of the Federal Reserve System, effective this
v ,2005.
day of 3,&fixha
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
-l
b
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-
Hanspeter Walder &
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"AlWTORIZED BY THE ACT OF JULY 27,1955,
. ;>MINSTEROATTTt.'
.4$1Q$1)1;.
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DATE
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