Release Date: January 8, 2004
For immediate release
The Federal Reserve Board on Thursday announced the issuance, together with the Commission Bancaire, the regulator of French banks, of a consent enforcement action against Credit Lyonnais, S.A., a large French bank, and Credit Agricole, S.A., its parent company.
This action is the third one agreed to by Credit Lyonnais and its parent with respect to Credit Lyonnais's participation in the rehabilitation of the Executive Life Insurance Co. of California. The Federal Reserve was working with the French banking regulator on this joint action when the other enforcement actions were announced on December 18, 2003. The other actions, among other things, require specific remedial actions to address concerns arising out of the Executive Life matter.
The action issued Thursday by the Federal Reserve and the Commission Bancaire requires that Credit Lyonnais and Credit Agricole, as Credit Lyonnais's parent, establish programs designed to ensure their overall compliance with applicable U.S. banking and financial laws, rules and regulations. Credit Lyonnais and Credit Agricole are also required to enhance their general organizational infrastructure, as well as policies and procedures, with respect to compliance with U. S. laws and regulations, subject to the oversight of the Commission Bancaire and the Federal Reserve Board.
Credit Agricole, which acquired Credit Lyonnais in June 2003, had no part in the conduct that led to this enforcement action.
A copy of the Order Issued Upon Consent and Decision is attached.
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Last update: January 8, 2004