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FDIC Enforcement Decisions and Orders

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   [10,072A] In the Matter of Douglas A. Winter, Docket No. FDIC-89-29e (5-18-90).

   Director and officer prohibited from participation in the affairs of, or the exercise of voting rights in, any insured institution.

   [.1] Prohibition, Removal, or Suspension—Prohibition—Participation in Affairs of Any Insured Institution
   [.2] Prohibition, Removal, or Suspension—Prohibition—Exercise of Voting Rights

In the Matter of
DOUGLAS A. WINTER,individually,
and as an executive officer, a director, and
a person participating in the conduct of
the affairs, and as an institution-affiliated
party of
STATE BANK OF GREENWALD
GREENWALD, MINNESOTA
(Insured State Nonmember Bank—In
Receivership)
ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION

   On November 7, 1989, the Federal Deposit Insurance Corporation ("FDIC") issued to Douglas A. Winter ("Respondent") a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE"), detailing the unsafe or unsound banking practices and breaches of fiduciary duty alleged to have been committed by Respondent, individually and in his capacity as director, officer and person participating in the conduct of the affairs of State Bank of Greenwald, Greenwald, Minnesota ("Bank"), and further detailing Respondent's right to a hearing on such alleged charges under section 8(e) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. §1818(e).
   Thereafter, Respondent, having waived his right to a hearing, 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, dated February 9, 1990, whereby solely for the purpose of this proceeding and without admitting or denying the allegations contained in the NOTICE, Respondent consented to the issuance of an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") by the FDIC.
   The FDIC considered the matter and determined it had reason to believe that:
   (a) Respondent has engaged or participated in unsafe or unsound banking practices and breaches of his fiduciary duty as a director and officer of the Bank;
   (b) By reason of such practices and breaches of fiduciary duty, (A) the Bank has suffered substantial financial loss or other damage, and (B) the interests of the Bank's depositors were seriously prejudiced; and
   (c) Such practices and breaches of fiduciary duty demonstrate Respondent's continuing disregard for the safety or soundness of the Bank.
   The FDIC further determined that such practices and breaches of fiduciary duty demonstrate Respondent's unfitness to serve as an Institution-Affiliated Party of any insured depository institution, as defined in section 3(u) of the Act, 12 U.S.C. §1813(u). The FDIC, therefore, accepted {{4-1-90 p.C-366}}the CONSENT AGREEMENT and issued the following:

ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION

   [.1] 1. IT IS ORDERED that, except with prior written consent obtained in accordance with the said section 8(e)(7)(B) of the Act, Respondent shall not continue or commence to hold any office in, or participate in any manner in the conduct of the affairs of, any institution or agency specified in section 8(e)(7)(A) of the Act, 12 U.S.C. §1818(e)(7)(A), including:
   (a) Any insured depository institution, as defined in section 3(c) of the Act, 12 U.S.C. §1813(c);
   (b) Any institution treated as an insured bank under subsections 8(b)(3) or 8(b)(4) of the Act, 12 U.S.C. §§1818(b)(3) and (4), including, without limitation: (1) any bank holding company, (2) any subsidiary of a bank holding company other than a bank, (3) any foreign bank that maintains a branch or agency in a State, (4) any foreign bank or foreign company controlling a foreign bank that controls a commercial lending company organized under State law, and (5) any company of which any foreign bank or company referred to in (3) and (4), above, is a subsidiary;
   (c) Any institution treated as a savings association under section 8(b)(8) of the Act, 12 U.S.C. §1818(b)(8), including, without limitation, any holding company of a savings association, any subsidiary of such a holding company, any service corporation of a savings association, and any subsidiary of such service corporation, whether wholly or partly owned;
   (d) Any insured credit union under the Federal Credit Union Act;
   (e) Any institution chartered under the Farm Credit Act of 1971;
   (f) Any appropriate Federal depository institution regulatory agency;
   (g) The Federal Housing Finance Board and any Federal home loan bank; and
   (h) The Resolution Trust Corporation.

   [.2] IT IS FURTHER ORDERED that, except with prior written consent obtained in accordance with the said section 8(e)(7)(B) of the Act, Respondent shall not:
   (a) Solicit, procure, transfer, vote, or attempt to transfer or to vote any proxy, consent, or authorization with respect to any voting rights in any institution specified in the said section 8(e)(7)(A) of the Act;
   (b) Violate any voting agreement previously approved by the appropriate Federal banking agency; or
   (c) Vote for a director of any institution specified in the said section 8(e)(7)(A) of the Act, or serve or act as an Institution-Affiliated Party.
   This ORDER shall become effective ten (10) days after the date of its issuance.
   The provisions of this ORDER shall 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 at Washington, D.C. this 18th day of May, 1990.

In the Matter of
DOUGLAS A. WINTER,individually,
and as an executive officer, a director, and
a person participating in the conduct of
the affairs, and as an institution-affiliated
party of
STATE BANK OF GREENWALD
GREENWALD, MINNESOTA
(Insured State Nonmember Bank—In
Receivership)
STIPULATION AND CONSENT TO
THE ISSUANCE OF AN ORDER OF
PROHIBITION FROM FURTHER
PARTICIPATION

   Subject to the acceptance of this STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("CONSENT AGREEMENT") by the Federal Deposit Insurance Corporation ("FDIC"), it is hereby stipulated and agreed by and between a representative of the Legal Division of the FDIC and Douglas A. Winter ("Respondent") as follows:
   1. Respondent, solely for the purpose of this proceeding, and without admitting or denying any of the allegations of unsafe or unsound banking practices and breaches of fiduciary duty set forth in the NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE"), issued on November 7, 1989, hereby consents and agrees to the issuance by the FDIC of an ORDER OF PROHIBI- {{9-30-91 p.C-366.1}}TION FROM FURTHER PARTICIPATION ("ORDER").
   2. Respondent further stipulates and agrees that such ORDER shall become effective ten (10) days after its issuance by the FDIC and shall be final and fully enforceable by the FDIC pursuant to the provisions of section 8(i) and (j) of the Federal Deposit Insurance Act, 12 U.S.C. §§1818(i) and (j), subject only to the provisions set forth in paragraph 3 of this CONSENT AGREEMENT.
   3. In the event that FDIC accepts this CONSENT AGREEMENT and issues the ORDER, it is agreed that no action will be taken by the FDIC to enforce said ORDER against Respondent in the United States District Court unless the Respondent has violated or is about to violate any provisions of the ORDER.
   4. In connection with the issuance of the ORDER, Respondent hereby waives:

       (a) the right to assert defenses to, or otherwise contest, the charges set forth in the NOTICE;
       (b) a hearing for the purpose of taking evidence on the allegations set forth in the NOTICE;
       (c) the filing of proposed findings of fact and conclusions of law;
       (d) the issuance of a recommended decision by an administrative law judge; and
       (e) exceptions and briefs with respect to such recommended decision.
   Dated this 9th day of February, 1990.

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