blog # 7

Ex-Chief of Park Avenue Bank Charged With Bailout Fraud

Terms :

1. Entities -Something that exists as a particular and discrete unit: Persons and corporations are equivalent entities under the law.

2. Troubled Asset Relief Program (TARF) - a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector. It is the largest component of the government's measures in 2008 to address the subprime mortgage crisis.

3.Federal Deposit Insurance Corporation -The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system by: insuring deposits,examining and supervising financial institutions for safety and soundness and consumer protection, and ,managing receiverships.

Summary:

Charles J. Antonucci SR. former president of the Park Avenue Bank in Manhattan was charged with fraud, embezzlement, and bribery because he tried to defraud the federal government 's bank bailout program. He had the federal regulators thinking that he had invested 6.5 million into the bank of his own money. But, he had really made investments using the bank's money, he put the money into a group of entities he controlled and then used that money to buy most of the bank. This made the bank appear strong that it was because he was double counting the moneymore than $11 million from TARP. Mr. Antonucci also, approved millions of dollars in bank overdrafts to firms controlled by and associate in order to use private planes for trips to like the Super Bowl and Golf Tournaments. Mr. Antonucci was also charged with defruading a Flordia church of more than $100,000.He was released on a $2million personal recognizance bond by federal magistrate judge. federal desposit iInsurance corporation seized and sold the bank. After customers seen that the name of the bank had been changed they really had no concerns as long as they got their money.

In my Opinion this is a major issue people money is at stake and many of other things that could have happened and had a big affect on the people who bank their finacially. Banks should check up on things more often because, if we were still in the recesssion like when it first started people would have been really worried. I find it scary that the people who banked with this bank had no concern on what was really going on in their bank as long as they got their money i think the government should make the customers more aware of whats going on so, that they know how this will have an effect on them.