[¶11,703] In the Matter of M.J. Cowan, Community State Bank, Austin, Texas, Docket No. 99-081e (4-21-00)
Respondent prohibited from participating in the conduct of affairs of,
or exercising voting rights in, any insured institution without the
prior written approval of the FDIC.
[.1] Prohibition, Removal or SuspensionProhibition FromParticipation in
Conduct of Affairs
[.2] Prohibition, Removal or SuspensionProhibition FromVoting Rights,
Exercise of
In the Matter OF
GARY BOWLES,
individually, and as a director,
officer, and institution-affiliated party of
and
M.J. COWAN,
individually, and as a director,
officer, and institution-affiliated party of
COMMUNITY STATE BANK
AUSTIN, TEXAS
(Insured State Nonmember Bank)
ORDER OF PROHIBITION
FROM FURTHER
PARTICIPATION
FDIC-99-081e
{{6-30-00 p.C-4913}}
M.J. Cowan (``Respondent'') has been advised of the right to
receive a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION
(``NOTICE'') issued by the Federal Deposit Insurance Corporation
(``FDIC'') detailing the unsafe or unsound banking practices,
and/or breaches of fiduciary duty for which an ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION (``ORDER'') may issue, and has been
further advised of the right to a hearing on the alleged charges under
section 8(e) of the Federal Deposit Insurance Act (``Act''), 12
U.S.C. § 1818(e), and the FDIC's Rules of Practice and Procedure, 12
C.F.R. Part 308. Having waived those rights, the Respondent entered
into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF
PROHIBITION FROM FURTHER PARTICIPATION (``CONSENT AGREEMENT'') with
a representative of the Legal Division of the FDIC, whereby solely for
the purpose of this proceeding and without admitting or denying any
unsafe or unsound banking practices, and/or any breaches of fiduciary
duty. Respondent consented to the issuance of an ORDER by the FDIC.
The FDIC considered the matter and determined it had reason to believe
that:
(a) The Respondent has engaged or participated in unsafe or unsound
banking practices, and/or breaches of fiduciary duty as an officer,
director and/or institution-affiliated party of the Community State
Bank, Austin, Texas (``Bank'');
(b) By reason of such practices and/or breaches of fiduciary duty, the
Bank has suffered financial loss or other damage and/or the interests
of the Bank's depositors have been or could be prejudiced; and
(c) Such practices and/or breaches of fiduciary duty involve personal
dishonesty on the part of the Respondent or demonstrate the
Respondent's willful and/or continuing disregard for the safety or
soundness of the Bank.
The FDIC further determined that such practices and/or breaches of
fiduciary duty demonstrate Respondent's unfitness to serve as a
director, officer, person participating in the conduct of the affairs
or as an institution-affiliated party of the Bank, any other insured
depository institution, or any other agency or organization enumerated
in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A).
The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the
following:
ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION
1. M.J. Cowan is hereby, without the prior written approval of the
FDIC and the appropriate Federal financial institutions regulatory
agency, as that term is defined in section 8(e)(7)(D) of the Act,
12 U.S.C. § 1818(e)(7)(D), prohibited from:
[.1] (a) participating in any manner in the conduct of the affairs of any
financial institution or organization enumerated in section 8(e)(7)(A)
of the Act, 12 U.S.C. § 1818(e) (7)(A);
[.2] (b) soliciting, procuring, transferring, attempting to transfer,
voting, or attempting to vote any proxy, consent or authorization with
respect to any voting rights in any financial institution enumerated in
section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A);
(c) violating any voting agreement previously approved by the
appropriate Federal banking agency; or
(d) voting for a director, or serving or acting as an
institution-affiliated party.
2. This ORDER will become effective ten (10) days after its
issuance. The provisions of this ORDER will remain effective and
enforceable except to the extent that, and until such time as, any
provision of this ORDER shall have been modified, terminated,
suspended, or set aside by the FDIC.
Pursuant to delegated authority.
Dated this 21st day of April, 2000.