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FDIC Enforcement Decisions and Orders

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   [10,168] In the Matter of Robert A. Carrane, Docket No. FDIC-90-259e (1-22-91).

   Institution-affiliated party prohibited from further participation in affairs of Bank or of any federally insured or regulated financial institution, and from exercising voting rights in any such institution. (This order was modified by order of the FDIC dated 12-18-91; see ¶15,372.)

   [.1] Prohibition—Service as Director
   [.2] Prohibition—Participation in Conduct of Affairs
   [.3] Prohibition—Exercise of Voting Rights

In the Matter of
ROBERT A. CARRANE
Individually, and as an
Institution-affiliated party of
KEMPTON STATE BANK
KEMPTON, ILLINOIS
(Insured State Nonmember Bank)
ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION

   Robert A. Carrane ("Respondent"), having been advised of his right to 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, violations of law, rule or regulation and/or breaches of fiduciary duty alleged to have been committed by Respondent individually, and in his capacity as an institution-affiliated party of Kempton State Bank, Kempton, Illinois ("Bank"), by reason of which the Bank has suffered or will probably suffer financial loss or other damage, the interests of depositors have been or could be prejudiced, and/or Respondent received financial gain or other benefit, and which involve personal dishonesty on the part of Respondent and/or demonstrate his willful or continuing disregard for the safety and soundness of the Bank, {{3-31-91 p.C-771}} and having been further advised of his right to a hearing on the alleged charges under section 8(e) of the Federal Deposit Insurance Act, 12 U.S.C. § 1818(e), and Part 308 of the FDIC's Rules of Practice and Procedures, 12 C.F.R. 308, and having waived those rights, Respondent entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION FROM PARTICIPATION ("CONSENT AGREEMENT") dated October 26, 1990, with a representative of the Legal Division of the FDIC, whereby solely for the purpose of this proceeding and without admitting or denying any violations of law, rules, and regulations, unsafe or unsound banking practices, or breaches of fiduciary duty, Respondent consented to the issuance of an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") by the FDIC.
   The FDIC considered the matter and determined that it had reason to believe that:

       (i) Respondent had engaged or participated in violations of law, rules, and regulations, unsafe or unsound banking practices, and/or breaches of fiduciary duty, as an institution-affiliated party of the Bank;
       (ii) By reason of such violations, practices and/or breaches of fiduciary duty, the Bank has suffered or will probably suffer financial loss or other damage, the interests of the Bank's depositors have been or could be prejudiced and/ or Respondent received financial gain; and
       (iii) Such violations, practices and/or breaches of fiduciary duty involve personal dishonesty on the part of Respondent and/or demonstrate a willful or continuing disregard for the Bank's safety and soundness.
   The FDIC further determined that such violations, practices and/or breaches of fiduciary duty evidence Respondent's unfitness to serve as an officer, director, participant in the conduct of the affairs or as an institution-affiliated party of the Bank, or any other insured depository institution, 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

   [.1] 1. IT IS HEREBY ORDERED, that Robert A. Carrane is prohibited, without the prior written consent 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), from serving or acting as a director, officer, employee or institution-affiliated party of, or participating in any manner in the conduct of the affairs of the Bank or any insured depository institution, agency, or organization enumerated in section 8(e) (7) of the Act, 12 U.S.C. § 1818(e) (7) (A), without the prior written consent 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) (0).

   [.2] 2. IT IS FURTHER ORDERED, that Robert A. Carrane is prohibited from voting for a director, or soliciting, procuring, transferring, attempting to transfer, voting or attempting to vote any prory, consent, or authorization with respect to the voting rights in the Bank, or any other depository institution, agency or organization enumerated in section 8(e) (7) of the Act, 12 U.S.C. § 1818(e) (7), without the prior written consent 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).

   [.3] 3. IT IS FURTHER ORDERED, that Robert A. Carrane is prohibited from violating any voting agreement previously approved by the appropriate Federal banking agency, as that term is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q), without the prior written consent 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).
   This ORDER shall become effective ten days after its issuance by the FDIC. The provision 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 2nd day of January 1991.

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