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FDIC Enforcement Decisions and Orders

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{{3-31-92 p.C-1893}}
   [10,431] In the Matter of John B. O'Donnell, Republic Bank, Torrance, California, Docket No. FDIC-91-258e (1-31-92).

   Respondent prohibited from participating in the conduct of affairs of, or exercising voting rights in, any insured institution without the prior consent of the FDIC.

   [.1] Prohibition—Participation in Conduct of Affairs
   [.2] Prohibition—Exercise of Voting Rights

In the Matter of
JOHN B. O'DONNELL, individually,
and as a former officer, director,
person participating in the
conduct of the affairs, and
institution-affiliated party of
REPUBLIC BANK
TORRANCE, CALIFORNIA
(Insured State Nonmember Bank)
ORDER OF
PROHIBITION FROM
FURTHER PARTICIPATION

FDIC-91-258e

   John B. O'Donnell ("Respondent"), having received 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 laws and regulations, and breaches of fiduciary duty alleged to have been engaged in by the Respondent individually and as an officer, director, participant in the conduct of the affairs of, and institution-affiliated party of, Republic Bank, Torrance, California ("In-
{{3-31-92 p.C-1894}}sured Institution"), which resulted, or will result in substantial financial loss or other damage to the Insured Institution, and/or that the interests of depositors have been or could be prejudiced, and/or that Respondent has received financial gain or other benefit; and which demonstrate Respondent's willful and continuing disregard for the safety or soundness of the Insured Institution; and having been advised of his 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 Part 308 of the FDIC's Rules and Practice and Procedure, 56 Fed. Reg. 37,968 (1991) (to be codified at 12 C.F.R. Part 308), and having waived those rights, 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 dated November 19, 1991, whereby, solely for the purpose of this proceeding and without admitting or denying any unsafe or unsound banking practices, violations of laws and regulations, and 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 Respondent has engaged or participated in unsafe or unsound banking practices, violations of laws and regulations, and breaches of fiduciary duty; that by reason of such practices, violations, and breaches the Insured Institution has suffered or will probably suffer substantial financial loss or other damage, and/or that the interests of the depositors have been or could be prejudiced, and/or that Respondent received financial gain or other benefit; and that such practices, violations, and breaches demonstrate Respondent's willful and continuing disregard for the safety or soundness of the Insured Institution.
   The FDIC further determined that such practices, violations, and breaches demonstrate Respondent's unfitness to serve as an officer, director, participant in the conduct of the affairs of, or institution-affiliated party of the Insured Institution or any other insured depository institution or agency or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A) (1989). The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER OF PROHIBITION FROM FURTHER PARTICIPATION

   [.1] 1. IT IS HEREBY ORDERED, that the Respondent shall not participate in any manner in the conduct of the affairs of the Insured Institution or any insured depository institution, agency, or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A) (1989), 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).

   [.2] 2. IT IS FURTHER ORDERED, that the Respondent shall not solicit, procure, transfer, attempt to transfer, vote, or attempt to vote any proxy, consent, or authorization with respect to any voting rights in the Insured Institution 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), 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. IT IS FURTHER ORDERED, that the Respondent shall not violate any voting agreement with respect to any insured depository institution, agency, or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A), previously approved by the appropriate Federal financial institutions regulatory agency, 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).
   4. IT IS FURTHER ORDERED, that the Respondent shall not vote for a director, or serve or act as an institution-affiliated party, as that term is defined in section 3(u) of the Act, 12 U.S.C. § 1813(u), of the Insured Institution 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), 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).
{{3-31-92 p.C-1895}}This ORDER shall become effective ten (10) days after issuance by the FDIC. 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.
   Dated at Washington, D.C., this 31st day of January, 1992.
   Pursuant to delegated authority.

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