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For immediate release
June 18, 1997
The Federal Reserve Board today announced the execution
of a Written Agreement by and between the Federal Reserve Bank of
New York and John Widmer, a former officer and institutionaffiliated party of the New York Branch of Swiss Bank
Corporation, New York, New York.
Mr. Widmer, without admitting to any allegations,
consented to the issuance of the Written Agreement to address his
alleged inadequate supervision of the foreign exchange trading of
the New York Branch of Swiss Bank Corporation.
A copy of the Written Agreement is attached.
Attachment
UNITED STATES OF AMERICA
BEFORE THE BO~ARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.
Written Agreement by and between
;
JOHN WTDMER
!
A Former InStitUtiOnAffiliated Party of
Docket No. 93-023-WA/RB-I
;
SWISS BANK CORPORATION
NEW YORK BRANCH
New York, New York
1
1
and
;
FEDERAL RESERVE BANK OF NEW YORK
New York, New York
;
WHEREAS, in recognigition of their common goal
to
maintain the financial soundness of foreign exchange trading
activities in the United States and to address Widmer's alleged
inadequate supervision of the foreign exchange trading of the New
York Branch
(the "Branch") of Swiss Bank Corporation, a foreign
bank, the Federal Reserve Bank of New York and John Widmer
("Widmer") , a former officer and institution-affiliated
party, as
defined in Sections 3(u) and 8(b) (4) of the Federal Deposit
Insurance Act
1818(b) (4)),
(the "FDI Act") (12 U.S.C. §§ 1813(u) and
have mutually agreed to enter into this Agreement;
and
WHEREAS, this Agreement is being executed in accordance
with the Rules Regarding Delegation of Authority of the Board of
Governors of the Federal Reserve System
(the "Board of
Governors" ) ,, specifically 12 C.F.R. § 265.11(a) (15), and the
Reserve Bank has received the prior approval of the Director of
the Division of Banking Supervision and Regulation and the
General Counsel of the Board of Governors to enter into this
Agreement with Widmer.
NOW, THEREFORE, prior to the taking of any testimony or
adjudication of or finding on any issue of fact or law herein,
and without this Agreement constituting an admission of any
allegation made or implied by the Board of Governors, the Reserve
Bank and Widmer agree as follows:
1.
In the event that Widmer becomes an institution-
affiliated party 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)),
Widmer 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 Widmer to be
uncertain about his responsibilities;
(b) remain fully informed on the current status of
all activities within his area of responsibility,
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including the
institution's or agency's compliance with its internal policies
and all applicable laws and regulations;
(c) refrain from violating the standards
established by any applicable federal or state statute,
regulation, policy statement, guideline or similar pronouncement
of any federal or state banking regulator, governing the safe and
sound operation of financial institutions and take such actions
as are necessary and consistent with his responsibilities
to
ensure that all operations within his area of responsibility are
conducted in a safe and sound manner and subject to appropriate
supervision by the institution or agency; and
(d) ensure that any personnel who report to Widmer
are properly supervised to ensure their compliance with all
applicable laws, regulations, or other agency pronouncements.
2.
All communications
regarding this Agreement shall
be addressed to:
(a)
Mr. Donald T. Vangel
Senior Vice President
Federal Reserve Bank of New York
33 Liberty Street
New York, New York 10045
(b)
Mr. John Widmer
c/o Peter Eikenberry, Esq.
63 Wall St.
New York, New York 10005
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3.
The provisions of this Agreement 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 Widmer; provided, however, that the Board of Governors,
shall
not take further action against Widmer based upon any
information presently known by the Board of Governors concerning
the matters covered by this Agreement.
4.
This Agreement, and each and every provision
hereof, is binding upon Widmer and shall remain fully effective
and enforceable until expressly stayed, modified, terminated or
suspended in writing by the Reserve Bank.
5.
This Agreement is a "written agreement" for the
purposes of section 8 of the FDI Act
(12 U.S.C. § 1818)
IN WITNESS WHEREOF, the parties have caused this
Agreement to be executed as of the &
day of
t(Cq
, 1997.
FEDERAL RESERVE BANK OF NEW
NEW YORK
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