to Cease and Desist Issued Against State Bank of India
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.
Desist Order Issued Against Continental Stock Transfer and Trust
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.
Desist Order Issued Against Commercial Bank of New York
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.
Desist Order Issued Against U.S. Trust Corporation and its Subsidiary;
Fined $10 Million
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
Banker Fined $50,000, Makes Over $200,000 in Consumer
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
Takes Action Against Citigroup
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.
Banker's License Revoked, Fined $100,000
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
Ltd. Surrenders License, Pays $1.1 Million in Consumer Restitution
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.