Home > Regulation & Examinations > Bank Examinations > FDIC Enforcement Decisions and Orders |
|||
FDIC Enforcement Decisions and Orders |
|
Request for reconsideration of application for permission to serve as an employee of Bank was denied. The FDIC found that Respondent did not satisfy the regulatory requirements applicable to a Petition for Reconsideration. (Related proceedings in this docket appear at [¶
[.1] Practice and ProcedurePetition for ReconsiderationContents
[.2] Practice and ProcedurePetitions to FDICBurden of Submitting a Complete Record
[.3] Prohibition, Removal, or SuspensionConsent by FDICDenied
[.4] Practice and ProcedurePetition for ReconsiderationFurther Petitions Limited
In the Matter of *** BANK *** ***
STATEMENT OF THE CASE
On September 30, 1986, *** or "Respondent") filed an application pursuant to Section 8(j) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. §1818(j), seeking to obtain for a third time in less than two years from the date of his removal pursuant to Section 8(e) of the Act, 12 U.S.C. 1818(e), the written approval of the Federal Deposit Insurance Corporation ("FDIC") to serve as an employee of the Bank ***, *** ("Bank"). On January 20, 1987, the Board of Directors ("Board") of the FDIC issued its Decision and Order Denying Request for Approval of Service as Bank Employee ("Decision and Order") denying the application of *** to serve as an employee of the Bank. On February 19, 1987, *** invoked 12 C.F.R. §303.6(e) and petitioned the Board for reconsideration of its Order ("Reconsideration"). Further processing of the Reconsideration was not possible until a completed application for reconsideration, which was filed in July 1987, was received from ***, and until an analysis of the condition of the Bank was made based upon an examination of the Bank completed in December, 1987, and an assessment of a Notice of Acquisition of Control, which was filed by ***, president of the Bank, was completed.
Upon review of the record as a whole, including inter alia, the administrative and court of appeals proceedings, the documents before the Board of Directors when it issued its Decision and Order on January 20, 1987, including the documentation in support of the March 21 and September 30, 1986 applications, and the documents submitted with Respondent *** Reconsideration, including the February 18, 1987 letter from Bank President *** and its attachments, the Board of Directors of the Federal Deposit Insurance Corporation finds that Respondent *** failed to meet his burden for petitioning the Board of Directors for reconsideration pursuant to 12 C.F.R. §303.6(e).
[.1] 12 C.F.R. §303.6(e) provides in pertinent part as follows:
[.3] Despite Respondent's incomplete application, however, the Board would have held in the same manner. At the time it was rendering its Orders on Respondent ***'s first two applications submitted on June 19, 1985, and March 21, 1986, the Board had before it the same letters that have been submitted now for ***'s Reconsideration. The Board, however, has consistently found ***'s participation in the conduct of the affairs of the Bank *** unacceptable. As the
{{4-1-90 p.A-1305}}Board has repeatedly stated, the involvement of *** and his family in the Bank over an extensive period of time, in conjunction with ***'s proposed position and job duties, would place *** in the position of having an opportunity of exercising substantial influence and control over the affairs and operations of the Bank. ***'s participation in the Bank is even more untenable now in light of the present condition of the Bank, as revealed by the most current examination, and the current uncertainty and controversy over the ownership of the Bank given the status of the Notice of Acquisition of Control filed by Bank President ***.
[.4] While the Board finds that ***'s participation in the conduct of the affairs of the Bank *** would not be in the best interests of the Bank or its depositors, it expresses no opinion as to the appropriateness of respondent's participation in the conduct of the affairs of another financial institution. This Decision and Order does not preclude the Respondent from submitting an application demonstrating his fitness to participate in the conduct of the affairs of another financial institution provided such an application meets the criteria set forth in 12 C.F.R. § 303.5, including presenting a complete record upon which such a determination may be made. In view of all of the various applications, including the June 19, 1985 and March 21, 1986 applications and this request for reconsideration, being submitted within approximately two years from the date of Respondent's removal, and in view of the findings and opinions expressed herein, the Board will not entertain further applications or rerd of Directors of the Federal Deposit Insurance Corporation finds that Respondent ***'s participation in the conduct of the affairs of the Bank ***, *** would not be in the interests of the Bank or its depositors and would undermine public confidence in the regulatory process. |
|
Last Updated 6/6/2003 | legal@fdic.gov |
Home Contact Us Search Help SiteMap Forms Freedom of Information Act (FOIA) Service Center Website Policies USA.gov |
FDIC Office of Inspector General |