In accordance with the provisions of most written agreements and cease and desist orders with state member banks and bank holding companies, the Director of Banking Supervision and Regulation must approve all dividend payments.  Current procedures require Reserve Banks to submit a copy of the dividend request and a memorandum supporting a recommended action to the Director.  A letter communicating the Director's decision is then sent directly to the bank or bank holding company from the Board.

                         Effective immediately, these procedures are being revised to permit the responsible Reserve Bank officer to sign and transmit the decision letter on the dividend request directly to the bank or bank holding company.  All other elements of the review and approval process remain essentially intact; however, to facilitate processing, Reserve Banks are requested to send the copy of the dividend request and supporting memoranda directly to Jack Jennings, Assistant Director (Mail Stop 154), as well as a copy of the proposed letter to be sent to the bank or bank holding company. Approval or denial by the Director or his designee is still required and will be transmitted in a letter to the Reserve Bank along with any modifications to the proposed letter.  

                        Any questions regarding this procedure should be directed to Jack Jennings, Assistant Director, on ext. 3053.