Enforcement Actions

Joint Order to Cease and Desist Issued Against State Bank of India
The New York State Banking Department, Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation issued a joint Order to Cease and Desist and Order of Assessment of a Civil Money Penalty and Monetary Payment against the State Bank of India, Mumbai, India, and the bank's three branches in New York, New York, its branch in Chicago, Illinois, and its agency in Los Angeles, California. The State Bank of India paid a total of $7.5 million in fines, half of which was paid to the State of New York.

Cease and Desist Order Issued Against Continental Stock Transfer and Trust Company
The Banking Department issued a Cease and Desist Order, on consent, to Continental Stock Transfer and Trust Company (CSTT), and the former President, Michael Nelson, pleaded guilty in Manhattan Supreme Court to falsification of banking records. CSTT paid a one million dollar fine to the Banking Department and Mr. Nelson paid a one million dollar fine to the State of New York.

Cease and Desist Order Issued Against Commercial Bank of New York
Commercial Bank of New York, without admitting any allegations, consented to the issuance of a Cease and Desist Order, and agreed to pay a fine of $4.25 million to the State of New York. The Banking Department took action because of the bank's failure to maintain processes and procedures reasonably designed to ensure the detection and reporting of suspicious activity, as required by the Federal Bank Secrecy Act and Part 300 of New York's Code of Rules and Regulations, and compliance with the rules and guidelines administered by the U.S. Department of Treasury's Office of Foreign Assets Control, 31 C.F.R. Part 500 et seq.

Cease and Desist Order Issued Against U.S. Trust Corporation and its Subsidiary; Fined $10 Million
The Federal Reserve Board and the New York State Banking Department issued a joint consent Order to Cease and Desist and an Assessment of a Civil Money Penalty and Monetary Payment against U.S. Trust Corporation, and its subsidiary, the United States Trust Company of New York, a state-chartered bank. U.S. Trust Corporation and the United States Trust Company of New York paid the Board of Governors of the Federal Reserve System a civil money penalty in the amount of $5 million and a $5 million monetary payment to the State of New York.

Mortgage Banker Fined $50,000, Makes Over $200,000 in Consumer Restitution
The FHB Funding/eHome Credit Corp. (FHB), a licensed mortgage banker in New York State, paid a $50,000 fine to the State of New York and made $213,736 in consumer restitution payments to residents of New York and seven other states for failing to comply with state and federal banking regulations; failing to maintain proper books and records; and failing to make refunds to borrowers who rescinded their loans. This is the first time that the Department has taken this type of enforcement action in conjunction with seven other states.

Banking Department Takes Action Against Citigroup
The Banking Department took historic action on behalf of New York's consumers by requiring Citigroup to commit to certain lending projections, to waive $1 million in fees on certain low interest loans issued to New Yorkers and to establish three new Loan Production Offices in predominantly minority communities in New York City. The action was the first time a regulator at the state or federal level has ever required a financial institution to commit to make loan projections with a specified minimum dollar amount.

Mortgage Banker's License Revoked, Fined $100,000
The Banking Department announced the revocation of the mortgage banker license of East Bay Funding Corp., for failing to comply with five provisions of the New York State Banking Law and the Superintendent's Regulations. It was the first time that a mortgage company has lost its license for charging fees that are not reasonably related to the work and services performed on the behalf of the borrowers. In addition, a $100,000 fine was imposed, payable to the State of New York.

Anvil Mortgage Ltd. Surrenders License, Pays $1.1 Million in Consumer Restitution
The Banking Department and the State Attorney General shut down a mortgage banker where borrowers were paying fees for deceptive pre-approvals. Anvil Mortgage Ltd. can no longer do business in New York State.