Ex-Park Avenue Bank CEO Committed TARP Fraud Out Of Love For Company, Himself

Author:
Publish date:

"During my tenure I abused the position of trust I enjoyed," said Charles Antonucci, who admitted to accepting 'what amounted to bribes from clients and faking a $6.5 million investment into the bank,' and used the money to fund, among other things, trips to the Superbowl. "Sometimes I did it to enrich myself, other times in a misguided attempt to keep the bank healthy." [WSJ]

Related

Banks Now Trying Extra Hard To Avoid Making The Rookie Mistakes That Mean Getting Caught Committing Fraud

Remember, earlier this summer, when a whole bunch of banks were sued over allegations their employees manipulated Libor? And Bob Diamond, CEO of the first, and so far only, bank to settle with regulators, lost his job, as did a bunch of his colleagues? And it was suggested that Barclays's offenses were but a drop in the bucket compared with those of UBS? And experts projected that this whole thing could cost the banks being investigated (of which there are many) tens of billions of dollars to make go away? And Nellie Diamond stopped Tweeting? As much fun as that's all been, a lot of firms would like to avoid going through it again, and to that end, have asked their compliance teams to run some workshops teaching employees how to keep things on the straight and narrow. For instance, while you might think that people would have mastered email by this point on the evolutionary chart-- specifically, that it never goes away and might be read again-- you would think wrong!  So the point is being hammered home in remedial electronic correspondence classes, particularly to those who'd previously not seen an issue with writing stuff like, "Anything for you, Big Boy" as a response to the request "Can you manipulate Libor for me today when you've a sec?" Also on the schedule-- mock happy hours with the team for members of the staff who can never seem to remember the appropriate response for when you're out at Punch Tavern and someone brings up "Holly with the cans who did me a solid by shaving 45 basis points off our submission." "Everyone is more paranoid, that's for sure," said one department head at a European investment bank, where the trading floor is festooned with posters reminding staff to report any suspicious behaviour. At his bank and at least one other European firm, executives said they were being asked to take part in an increasing number of behavioural coaching sessions, including simulations of pub outings. These were mainly done via webcasts, where participants act out conversations with colleagues where the talk turns to clients or office gossip, two bankers said. "You have to turn around and say, 'No, let's not talk about that'," said one. Culture Clean Up Follows Bankers To Bar [Reuters]

Barclays CEO Promises To Clear Out His Desk In Hypothetical Scenario In Which Bank Decides To Start Engaging In Rampant Fraud Again

Mr. Jenkins and the firm’s chairman, David Walker, told politicians on Tuesday that they were prioritizing ethics and reducing risky trading activity, adding that they would take responsibility if future problems were discovered at the bank. The Barclays’ chief, who agreed to forgo his bonus in response to the series of scandals that have hit Barclays in recent years, said he would resign if another scandal was uncovered while he was leading the bank. “The chief executive is responsible for what happens during their tenure and when incidents happen the price needs to be paid and I believe were I to find myself in that position I would do the right thing,” Mr. Jenkins said on Tuesday. When politicians asked Mr. Jenkins if he was eradicating the culture that he inherited from his predecessor Robert E. Diamond Jr., Barclays’ new chief said he was indeed “shredding that legacy” of sometimes being “too self-centered and too aggressive.” [Dealbook]