AmSouth Fined for Shoddy Oversight
Southeastern regional bank AmSouth (ASO) is paying $50 million in fines to settle a federal investigation stemming from allegations it failed to properly report "suspicious activities'' of some of its customers.
The Alabama-based bank, in the deal, is paying a $40 million fine to federal prosecutors and a $10 million fine to the Federal Reserve. AmSouth said the settlement will result in a $4 million pretax charge against third-quarter earnings.
In accepting the settlement, the U.S. Attorney's Office for the Southern District of Mississippi has agreed to take no further action against the bank, as long as AmSouth takes a series of steps to enhance its compliance procedures.
The deal stems from an investigation into allegations involving two AmSouth customers and a scheme involving fraudulent notes that were placed into a custodial account at the bank. The scheme triggered a number of civil lawsuits from individuals and institutions allegedly defrauded by the AmSouth customers.The federal investigation subsequently expanded to examine AmSouth's general procedures for policing its customers and spotting suspicious activities.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV