For

immediate

release

May

16, 1997

The Federal of ap. Order assistant Hang New Seng York, to Cease

Reserve

Board

today

announced Por Au,

the

issuance

and Desist and

against

Kwai

a former of the

loan Bank,

officer

institution-affiliated of Marine Midland

party Bank,

iJ.S.A., Division

New York. Mr. Au. without admitting based to any allegations, on his alleged consented

to the lending

issuance

of the Order

improper

activities. A copy of the Order is attached.

Attachment

UNITED
BEFORE THE BOARD OF

STATES

OF

AMERICA FEDERAL RESERVE SYSTEM

GOVERNORS

OF THE D.C.

WASHINGTON,

x

In the Matter KWAI POR AU

of
; ) ) i ) ) 1 x

Docket

No.

97-011-B-I

A ?ormer Officer and InsitutionAffiliated Party of HANG SENG BANK, U.S.A., DIVISION OF MARINE MIDLAND New York, New York

Order to Cease and Desist Issued ,Consent Pursuant to Upon the Federal Deposit Insurance Act, As Amended

BANK

WHEREAS, Federal Deposit

pursuant

to Sections Act, as amended

6(b)

and

(i) (3) of the

Insurance and

(the

"FDI Act") of the this a

(12 U.S.C. Federal Order former

§§ 1818(b) System

(i) (3)), the

Board

of Governors issues Kwai

Reserve to Cease assistant

(the "Board

of Governors") against

and Desist

(the "Order") and

Por Au,

loan officer 3!u)

institution-affiliated (12 U.S.C. Midland alleged

party, § 1813(u!), Bank, New

as defined of sang York,

in Section Sank,

of the FDI Act Division based

Seng

U.S.A.,

of Marine on Au's

New

York

("Hang

Seng"),

improper

lending

activities;

and

WHEREAS, consented Governors, this Order, to the

by affixing issuance

his signature Order

hereunder, of

Au has

of this

by the Board and every

has agreed

to comply

with

each

provision

of

and has waived

any and

all rights

he might

otherwise

have

pursuant

to 12 U.S.C.

§ 1818 or 12 C.F.R. of a notice

Part

263,

or

otherwise iearing; respect

(a) to the

issuance

of charges cf taking in this

and of evidence with

(b! to a hearing to any matter review

for the purpose or set forth

implied

Order;

cc; to and

obtainjudicial (d) to challenge validity, provision

of this Order

or any provision the basis, of this

hereof; issuance, or any

or contest

in any manner

effectiveness hereof.

or enforceability

Order

NOW, adjudication set forth

THEREFORE,

prior

to the taking

of any

testimony implied an Board of

or or

of or finding and

on any issue this Order made and

of fact

or law

herein,

without

constituting

admission Governors settlement

by Au of any in connection of this

allegation herewith, without

or implied solely

by the

of

for the purpose or extended

matter,

protracted

proceedings:

IT IS HEREBY
1,

ORDERED, that:

pursuant

to Sections

8(b)

and

2,

25

the FD; Act,
1.

Upon

becoming

an institution-affiliated in Section

party

of

any

institution

or agency

specified

8(e) (7) (A) of the but not limited holding shall

FDI Act to, any company, take

(12 U.S.C. insured or U.S. actions

§ 1818(e) (71 (A)), including, institution, bank

depository agency

or thrift bank, with Au his

or branch

of a foreign consistent

such

as are necessary, to ensure

responsibilities,

that he will 2

(a) comply

with

all

po:icies ool~cies

and

procedures

of his

employer,

carzicxlarly

those

ar.d procedures ir. lending

pertaining activities

to the lendins in a mar.ner ta-_ safe and sound

f~z.ztisn, is consistent baE:king laws and

(b; engage with his

fiduciary and

duties

and with fully

practices, regulations

(c) comply

with

all applicable

2. addressed to:

~11

communications

regarding

this

Order

shall

be

(a)

Mr. Donald T. Vangel Senior Vice President The Federal Reserve Bank of New York 59 Maiden Lane, 10th Floor 10045 New York, NY Mr. Kwai Por Au 69 71st Street Brooklyn, NY 11209 of this Order shall or any not bar, estop, or

(b)

3. or otherwise state Hang party agency Seng,

The provisions prevent the Board

of Governors taking

federal

or department or any Seng This remain Order, fully

from

any other

action

affecting

Au,

current

or former

institution-affiliated

of Hang 4.

and each effective

and evex-y provision and enforceable

hereof,

is and

shall

until

3

expressly t-e 3card

stayed,

modified,

terminated

or suspended

in writing

by

of C-c?~ernors.

By order this /qt;)ay of

of the Board
,

of Governors
1997.

effective

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

C./&T-hy:tiZY4 dQ-William W. Wiles Secretary of the Board