Federal Reserve Board and FDIC issue written agreement associated with the NorCrown Trust

Federal Reserve Bulletin, Spring, 2005

The Federal Reserve Board and the Federal Deposit Insurance Corporation announced on February 25, 2005, the execution of a joint written agreement by and among the Federal Reserve Bank of New York and the Federal Deposit Insurance Corporation with David Bodner and Murray Huberfeld. The written agreement requires that Mr. Bodner and Mr. Huberfeld comply with the prior approval requirements of section 19 of the Federal Deposit Insurance Act.

The agreement pertains to allegations that Mr. Bodner and Mr. Huberfeld did not seek the prior approval of the FDIC under section 19 of the Federal Deposit Insurance Act before an investment was made in what became The NorCrown Trust, an unregistered bank holding company that owns more than 99 percent of the voting shares of NorCrown Bank, Livingston, New Jersey, an insured state nonmember bank.

This joint written agreement follows joint enforcement actions announced on February 10, 2005, against The NorCrown Trust and Charles Kushner.