Federal Reserve Board and FDIC issue enforcement actions against the NorCrown Trust and Charles Kushner.The Federal Reserve Board and the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. announced on February 10, 2005, the issuance of joint enforcement actions against The NorCrown Trust and Charles Kushner Charles Kushner is a New Jersey real estate magnate and a major donor to Democratic politicians, most notably to Governor of New Jersey Jim McGreevey. On August 19, 2004, he pleaded guilty to tax violations and charges related to witness tampering. . The NorCrown Trust controls NorCrown Bank, Livingston, New Jersey. Charles Kushner is the trustee of The NorCrown Trust and a former chairman of NorCrown Bank. The joint order requires that The NorCrown Trust and Charles Kushner pay civil money penalties totaling at least $12.5 million, to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. The NorCrown Trust's shares of NorCrown Bank, and to transfer the shares to a voting trust A type of agreement by which two or more individuals who own corporate stock that carries voting rights transfer their shares to another party for voting purposes, so as to control corporate affairs. administered by an independent trustee until the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). is completed. The joint order also prohibits Mr. Kushner from participating in the conduct of the affairs of any financial institution or holding company. The Federal Reserve Board also issued an order upon consent under the Bank Holding Company Act requiring other individuals and trusts with relationships to The NorCrown Trust to cooperate in implementing the divestiture plan. The enforcement actions resolve allegations that The NorCrown Trust and Charles Kushner violated the Change in Bank Control Act, the Bank Holding Company Act, or both, in a series of transactions from 1995 through 1997, that led to the formation of The NorCrown Trust, which never received the Federal Reserve's approval to become a bank holding company. The joint order also resolves allegations of violations of Regulation O (Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks) and sections 23A and 23B of the Federal Reserve Act relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc transactions with NorCrown Bank. |
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