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FDIC Enforcement Decisions and Orders

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{{6-30-95 p.C-3697}}
   [11,005] In the Matter of Werner E. Schreiber, Mountain Bank, Whitefish, Montana, Docket No. FDIC-94-56e (7-7-94).

   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
[.3] Institution-Affiliated Party—Indemnification Prohibited

In the Matter of
WERNER E. SCHREIBER,
as an institution-affiliated
party of
MOUNTAIN BANK
WHITEFISH, MONTANA
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION

FDIC-94-56e

   Werner E. Schreiber ("Respondent") has been advised of the right to receive 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, for which an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") may issue, and has been further advised of the right to a hearing on the alleged charges under section 8(e) of the Federal Deposit Insurance Act ("Act"), as enacted in 1982 and 1989, 12 U.S.C. § 1818(e) (1982) and 12 U.S.C. § 1818(e) (1989), and the FDIC's Rules of Practice and Procedure, 12 C.F.R. Part 308. Having waived those rights, the Respondent entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION FROM FURTHER PART- ICIPATION ("CONSENT AGREEMENT") with a representative of the Legal Division of the FDIC, whereby solely for the purpose of this proceeding and without admitting or denying any unsafe or unsound banking practices, Respondent consented to the issuance of an ORDER by the FDIC.
   The FDIC considered the matter and determined it had reason to believe that:
   (a) The Respondent has engaged or participated in unsafe or unsound banking practices as an institution-affiliated party of the Bank;
   (b) By reason of such practices, the Bank has suffered financial loss or other damage, and/or the interests of the Bank's depositors could have been prejudiced; and
   (c) Such practices demonstrate the Respondent's willful and/or continuing disregard for the safety or soundness of the Bank.
   The FDIC further determined that such practices demonstrate the Respondent's unfitness to serve as a director, officer, person participating in the conduct of the affairs or as an institution-affiliated party of the Bank, any other insured depository institution, or any other 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 OF PROHIBITION FROM FURTHER PARTICIPATION

   [.1] 1. Werner E. Schreiber is, without the prior written approval of the FDIC and the appropriate Federal financial institutions regulatory agency, as that term is defined in {{6-30-95 p.C-3698}}section (8)(e)(7)(D) of the Act, 12 U.S.C. § 1818(e)(7)(D), prohibited from:
   (a) participating in any manner in the conduct of the affairs of any financial institution or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A);

   [.2] (b) soliciting, procuring, transferring, attempting to transfer, voting, or attempting to vote any proxy, consent or authorization with respect to any voting rights in any financial institution enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A);
   (c) violating any voting agreement previously approved by the appropriate Federal banking agency; or
   (d) voting for a director, or serving or acting as an institution-affiliated party.

   [.3] 2. Pursuant to section 18(k) of the Act, 12 U.S.C. § 1828(k), the Respondent shall not request or accept indemnification from the Bank or any person acting in concert with or on behalf of the Bank, as to any cost, fee, or obligation incurred by him as a result of this proceeding, and the Bank shall not pay or agree to pay such costs for the Respondent or anyone acting for or on behalf of him, including but not limited to, legal and other fees or costs paid or payable by or for the Respondent.
   3. This ORDER will become effective ten (10) days after its issuance. The provisions of this ORDER will 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 7th day of July, 1994.
   Pursuant to delegated authority.

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Last Updated 6/6/2003 legal@fdic.gov