January 19, 2006
Cease and desist order against Jean Peyrelevade
For immediate release
The Federal Reserve Board on Thursday announced the issuance of a Consent Order to Cease and Desist against Jean Peyrelevade, the former chairman of Credit Lyonnais, S.A., Paris, France. In December 2003, the Board issued a Notice of Charges against Mr. Peyrelevade, alleging that he participated in violations of the Bank Holding Company Act and its regulations relating to the "Executive Life" matter. Mr. Peyrelevade denied the charges and requested a hearing. The Board's Order resolves those charges.
In addition to the Board's Order, the U.S. Attorney in Los Angeles is also announcing today that Mr. Peyrelevade has agreed to enter a plea to pending criminal charges relating to this matter. Under the plea agreement, Mr. Peyrelevade has agreed to pay a $500,000 criminal fine.
The Board's Order restricts Mr. Peyrelevade's participation in the conduct of the affairs of foreign banks in the United States. The Board's Order supplements automatic restrictions imposed upon Mr. Peyrelevade upon acceptance of his plea to the criminal charge. By law, Mr. Peyrelevade will be prohibited from participating in the conduct of the affairs of domestic insured depository institutions without the Federal Deposit Insurance Corporation's approval.
A copy of the Order is attached.