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United Airlines CEO resigns amid federal probe

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By Keith Laing – 09/08/15 05:17 PM EDT

United Airlines CEO Jeff Smisek has resigned from his post due to a federal probe into allegations the company offered air service to win favor from a New Jersey state official, the company announced on Tuesday.

The Bergen County, N.J., newspaper reports that federal prosecutors have been investigating allegations that United offered flights from Newark to Columbia, S.C., to benefit the chairman of the Port of New York and New Jersey, which operates one of United’s biggest hubs, Newark Liberty International Airport.

United said Tuesday that Smisek and two other high-ranking officials have resigned effective immediately because of the investigation, which the company stressed it is cooperating with.

The company said a member of its board of directors, Oscar Munoz, is taking over effective immediately.

United said Tuesday Munoz would provide a steady hand at the helm of the company, despite the ongoing federal investigation.

“Oscar’s track record demonstrates that he has the right blend of strategic vision and strong leadership to continue United’s upward trajectory,” Board of Directors Chairman Henry Meyer said in a statement announcing the resignations of Smisek and United’s executive vice presidents of communications and government affairs.

“United is well positioned to continue executing on its strategic plan to further improve performance and the value and service it provides to its customers,” Meyer continued. “I’m honored to have been elected non-executive chairman by my fellow directors. The board thanks Jeff for his service to both United Airlines and Continental Airlines.”

Smisek has led United since its 2010 merger with Continental. Smisek previously ran Continental, which also operated a hub at Newark.

https://thehill.com/policy/transportation/252980-united-airlines-ceo-resigns-due-to-federal-probe

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More Payback for Not Taking the Bailout Money ; Hudson City facing federal probe

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A sad end for Hudson City Savings Bank ( Hudson City did not take the Federal Bailout)

https://www.crainsnewyork.com/article/20120827/BLOGS02/308279995/a-sad-end-for-hudson-city-savings-bank

APRIL 16, 2015    LAST UPDATED: THURSDAY, APRIL 16, 2015, 1:21 AM
BY RICHARD NEWMAN
STAFF WRITER |
THE RECORD

* Federal agencies checking for racial bias in lending

The sale of Hudson City Bancorp Inc. to M&T Bank Corp. may face a new obstacle: a government investigation into whether the parent company of Paramus-based Hudson City Savings Bank violated the Fair Housing Act by discriminating against protected minorities when making loans.

The Justice Department and the Consumer Financial Protection Bureau are examining whether Hudson City ran afoul of the federal housing discrimination law, Bloomberg News reported Wednesday.

“A preliminary CFPB review concluded that the firm denied loans to people in minority communities, including those in the New York area,” said the report, which attributed that information to “two people familiar with the matter.”

The acquisition by M&T, valued at $3.7 billion when it was announced in August 2012, has been delayed several times in part because of a federal regulator’s concerns about the strength of M&T’s anti-money-laundering defenses. Hudson City said this month that it had been advised by Buffalo, N.Y.-based M&T that the deal would not close on May 1, the previously announced target date.

Hudson City Chief Executive Officer Denis Salamone and Susan Munhall, head of the bank’s investor relations, did not respond Wednesday to requests for comment on the Bloomberg report.

Representatives of the consumer board and the U.S. Attorney’s Office in New Jersey said they had no comment.

Jumbo-mortgage lender Hudson City makes a majority of its loans in New Jersey and New York and focuses on the higher-end real estate market. It has received an overall “satisfactory” rating on its latest Community Reinvestment Act exam and a “low satisfactory” rating on the community lending subsection of the exam.

The Record reported in 2012 that fair-lending watchdogs in New York City and New Jersey had asked the Federal Reserve Board to hold hearings on M&T’s merger application. They were concerned that Hudson City’s black and Hispanic loan-denial rates were higher than those for whites and that the bank made very few conventional home purchase loans to black borrowers. No hearings have been held, but the acquisition has been delayed amid regulatory concerns, and the Federal Reserve has not ruled on the merger application.

https://www.northjersey.com/news/business/hudson-city-faces-probe-1.1310555