|For immediate release|
The Federal Reserve Board on Wednesday announced the issuance of a Combined Consent Order to Cease and Desist and an Order of Assessment of a Civil Money Penalty against WestLB AG, Dusseldorf, Germany, and its New York Branch.
The foreign bank, without admitting to any allegations, consented to the issuance of the Combined Order for violations of anti-tying restrictions in section 106 of the Bank Holding Company Act Amendments of 1970 and related unsafe and unsound banking practices. The Combined Order resolves allegations that in 2001, WestLB conditioned the availability or price of credit to corporate customers on the corporate customer's appointment of WestLB as an underwriter for issuances of debt securities.
The Order requires that WestLB pay a civil money penalty of $3 million and implement various policies and procedures designed to prevent future violations of this law.
A copy of the Order is attached.
2003 Enforcement actions