The S.E.C. is considering taking action against the bank unit for improperly storing documents sought by the regulators in connection with the investigation, this person said.

The bank units may also handle corporate bonds, including "junk bonds," mortgage-backed securities and short-term corporate debt known as commercial paper.

Mr. Borner, 33, is a vice president in the private bank unit of the Bank of New York.

The former chief executive of the bank unit, Liu Jinbao, was recalled to Beijing last month and is reportedly under investigation.

The narrow confines caused us to lose sight of the other bank units as we progressed but that did not cause us to wander off our course.

The company describes itself as the largest independent credit-card issuer in the world and the chairman of its bank unit was one of Mr. Bush's biggest fund-raisers.

Stephen Koseff, chief executive, said the private bank unit was expected to return to profit next year and that most of losses had already been taken.

To raise cash and strengthen its bank units, MNC recently sold its credit card business.

The appeals court had said the basic Federal banking law did not bar bank units from selling insurance, a decision that the Supreme Court let stand in 1990.

Mbank and 19 other bank units were seized when the Federal Reserve called in loans to the banks.