DOJ Appoints Baker Hostetler as Independent Examiner
for The Bank of New York
The U.S. Department of Justice has appointed the New York office of Baker Hostetler to serve as the Independent Examiner for The Bank of New York (BNY).
Reporting directly to the United States Attorney's Offices, the Federal Reserve Bank of New York, the New York State Banking Department, and BNY, New York partners George A. Stamboulidis, Lauren J. Resnick and John J. Carney, will be responsible for monitoring the bank's suspicious activity reporting practices and anti-money laundering procedures and its compliance with related laws and regulations.
Stamboulidis, the former government appointed monitor for Merrill Lynch in the Enron matter and head of the firm's White Collar Defense Practice, will lead the team. Resnick, a former section chief at the United States Attorney's Office in Brooklyn with significant private sector corporate compliance experience, will have primary responsibility for the investigative and compliance oversight aspects of the Examinership. Carney, a former Securities Fraud Unit Chief who prosecuted major international money laundering cases, will oversee BNY's anti-money laundering and auditing integration programs.
The three-year Examinership is one of the terms of the government's agreement with BNY, which agreed to pay $38 million in penalties and compensation over charges that it was involved in fraud and money laundering and failed to comply with mandatory reporting guidelines under the Bank Secrecy Act.