Matthew Bronfman, son of prominent financier Edgar Bronfman, resigned from the board of Israel Discount Bank of New York Friday, following a board inquiry into whether he used his position to benefit himself.
Earlier this year, the bank’s board hired law firm Sullivan & Cromwell to conduct an investigation of Mr. Bronfman’s activities. A report was presented to the board in March. While the report has not been released, two sources who have seen it say it looked into allegations that Mr. Bronfman persuaded an IDBNY loan officer to lend nearly $1 million to one of Mr. Bronfman’s partnerships, without telling the board. Sources close to Mr. Bronfman say the loan was made in 2005, before he became a director or bought a controlling interest in the bank.
Matthew Bronfman is currently being primped by his father to take over as head of the World Jewish Congress.