City National Bank Settles Investigation

Beverly Hills-based City National Bank said Thursday that it would pay a $750,000 fine to settle an investigation by federal regulators into its compliance with money-laundering laws.

The City National Corp. subsidiary, which caters to businesses and wealthy individuals, disclosed in January that it was in talks with regulators over its practices related to the Bank Secrecy Act.

City National said Thursday that it had reached a deal with the Office of the Comptroller of the Currency to resolve the matter. The bank said it “already has taken significant steps to strengthen compliance policies and procedures.”

Spokesman Cary Walker declined to comment further.

City National said it still expects earnings per share to grow 11% to 14% this year. The company last month reported 2004 net income of $206.3 million.

Before the announcement, City National shares were unchanged at $67.75 on the New York Stock Exchange.