Securities Activities of Banks in the GLB Era - Cleary Gottlieb Steen ...

dealer affiliate is purportedly involved in the alleged
tying, by the National Association of Securities
Dealers (the “NASD”) and/or the Securities and
Exchange Commission (the “SEC”). See also Part
III.A.5.g below.
(ii) Regulatory enforcement actions could involve civil
penalties and could affect the “well managed” status of
a bank or FHC for regulatory purposes.
(iii) The Anti-tying Statute provides for treble damages in
the event of a successful demonstration by a customer
of a statutory violation, together with the cost of suit,
“including a reasonable attorney’s fee”.
12 U.S.C. § 1975.
(iv) Risk to a bank’s reputation, as well as to other aspects
of its operational risk management, of violations of the
Anti-tying Statute cannot be ignored.
c. Education and Training
(i) A bank should ensure that its personnel receive
education and training concerning the Anti-tying
Statute. Training should focus on providing personnel
with a framework to identify and address anti-tying
compliance issues (not on providing “hints” on how to
tie without getting caught).
(ii) The scope and frequency of training should be tailored
to the nature and scope of the person’s or department’s
functions, with greater resources devoted to those
positions or departments that present the greatest legal
or reputational risk (e.g., corporate relationship
managers, syndicated lending personnel, persons with
authority to approve credit extensions or establish
pricing policies for the bank, and other personnel who
market bank products).
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