WASHINGTON (Reuters) - The U.S. Federal Reserve on Tuesday said it is banning former Bank of Montreal
The Fed said Lee did not admit to any allegations but consented to the order based on his alleged participation in unsafe and unsound banking practices, breaches of fiduciary duty and violations of law.
"The order asserts that Mr. Lee allegedly compromised the independent price verification process BMO relied on to ascertain the true value of his trading book, and also executed and then mis-valued exchange of options for options trades in order to conceal the true value of his trading book, which led to after-tax losses to the bank of at least C$327 million," the Fed said.
Lee cannot, without the Fed's consent, participate in any manner in the conduct of a banking institution or agency, including insured depository institutions, holding companies or foreign banks, the Fed said.
(Reporting by David Lawder)
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