==========================================START OF PAGE 1======

 
                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

Litigation Release No. 14851 / March 21, 1996

SECURITIES AND EXCHANGE COMMISSION v. VICTOR R. GOMEZ, United
States District Court for the Southern District of New York, 96
Civ. No. 96-2056 (LMM)

     The Securities and Exchange Commission ("Commission")
announced the filing today of a Complaint in the United States
District Court for the Southern District of New York against
Victor R. Gomez, a former vice president in Chemical Banking
Corporation's ("Chemical") foreign exchange trading group.  The
Complaint alleges that in 1994 Gomez engaged in a series of
unauthorized, multi-million dollar foreign currency transactions
involving the Mexican peso, and concealed his unauthorized
activity by creating fictitious records for certain transactions
and by failing to record others.  According to the Complaint,
Gomez' unauthorized currency trading placed Chemical in a multi-
million dollar, unhedged position in the Mexican peso, which
resulted in a loss of approximately $69 million for Chemical when
the value of the peso dramatically fell in December 1994 after
the Mexican government announced it would no longer support the
currency.  The Complaint alleges that because of Gomez'
fictitious records and false statements to supervisors, Chemical
officials initially were unaware of the open peso position.  As a
result, Chemical falsely reported to securities analysts that the

bank had "minimal" exposure from the peso devaluation even as
Chemical in fact faced material, and mounting losses from Gomez'
unauthorized trading activity.  The Complaint charges Gomez with
violating Sections 10(b) and 13(b)(5) of the Securities Exchange
Act of 1934 ("Exchange Act"), and Rules 10b-5 and 13b2-1
thereunder.  

     Specifically, the Complaint alleges that Gomez, to whom
Chemical assigned primary responsibility for its Mexican peso
transactions in 1994, entered into nine unauthorized
convertibility guarantee contracts, made two unauthorized fund
transfers and executed seventeen unauthorized and unhedged
currency trades.  Each convertibility guarantee obligated
Chemical to exchange from $13 million to $175 million for pesos
at the market rate on specified future dates.  The Complaint
alleges that Gomez did not disclose the convertibility
guarantees, and kept the documents associated with them in his
desk drawer.  The Complaint also alleges that Gomez recorded
fictitious trades to make it appear that fees and interest earned
as a result of the undisclosed convertibility guarantees and
undisclosed fund transfers were profits generated from Gomez'
trading.  
==========================================START OF PAGE 2======

     The Complaint alleges that in November 1994, Gomez began
acquiring a long forward position in the peso in violation of his
trading authority.  According to the Complaint, Gomez created
fictitious records to make it appear that he had, as required by
Chemical, balanced his trades in the peso with offsetting trades
in the dollar.  According to the Complaint, these fictitious
records masked the fact that Gomez had placed Chemical in a net
long position in the Mexican peso of approximately $171.5 million
as of the close of trading on December 19, 1994, just prior to
the devaluation of the peso.  

     Simultaneously with the filing of the Complaint, Gomez,
without admitting or denying any of the allegations in the
Complaint, consented to the entry of an order enjoining him from
violating Sections 10(b) and 13(b)(5) of the Exchange Act, and
Rules 10b-5 and 13b2-1 thereunder.  

     The Commission's action was coordinated with the United
States Attorney for the Southern District of New York, who today
announced criminal charges against Gomez, and with the Federal
Reserve Board, which also today announced the issuance of an
Order of Prohibition against Gomez.