New York State Banking Department And FDIC Issue Cease and Desist Order to The Park Avenue Bank
February 13, 2009
New York, NY: The New York State Banking Department and the Federal Deposit Insurance Corporation (FDIC) entered into parallel Consent Orders to Cease and Desist with The Park Avenue Bank, effective Feb. 11.
Under the Orders, The Park Avenue Bank is required to take immediate action to correct apparent violations of Federal laws and regulations and other deficiencies discovered during a joint examination conducted by the Banking Department and the FDIC, and to take all necessary steps to prevent unsafe or unsound banking practices through the establishment and adoption of policies, procedures, and processes that address weaknesses found in the bank’s internal controls, independent testing, strategic planning, loan practices and compliance.
A copy of the Order is available at www.banking.state.ny.us/ea090211.pdf.
The New York State Banking Department is the regulator for all state-chartered banking institutions, virtually all of the United States offices of international banking institutions, all of the State’s mortgage brokers, mortgage bankers, check cashers, money transmitters and budget planners. The aggregate assets of the depository institutions supervised by the Banking Department are $2.2 trillion.In addition to regulating banking institutions, the Banking Department is active in informing and educating all New Yorkers on banking matters. To contact the Banking Department, please call 1-877-BANK-NYS or visit our Web site at www.banking.state.ny.us.