The Federal Reserve Board has banned from the industry a former securities trader at the New York office of a German bank.
The Fed charged in a May 14 order that Michael Galietta conducted "unauthorized and unreported" trades that caused Deutsche Morgan Grenfell/C.J. Lawrence to incur "substantial losses."
Mr. Galietta agreed to the ban without admitting any wrongdoing. He cannot work for any bank, holding company, or nonbank subsidiary without the Fed's permission. The Fed also said he cannot vote in any shareholder's referendums involving a bank.
Separately, the Fed issued an enforcement action against Keyesport (Ill.) Bancshares. The holding company cannot declare or pay dividends, make any payments to its current or former directors and officers, or charge management fees to its subsidiary bank without the Fed's approval.
The holding company also must submit a plan within 60 days explaining how it will manage its debt.