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[¶12,165] In the Matter of Jong Koo Kim, The Foster Bank, Chicago, Illinois,
Docket No. 03-189e (3-10-04).
Respondent is prohibited from participating in the conduct of affairs
of, or exercising voting rights in, any insured institution without the
prior written approval of the FDIC.
[.1] Prohibition, Removal, or SuspensionProhibition FromParticipation in
Conduct of Affairs
[.2] Prohibition, Removal, or SuspensionProhibition FromVoting Rights,
exercise of
In the Matter of
JONG KOO KIM,
individually, and as an institution-affiliated party of
THE FOSTER BANK
CHICAGO, ILLINOIS
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
FDIC-03-189e
Jong Koo Kim ("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 violations of law or regulation, unsafe or
unsound banking practices, and breaches of fiduciary duty 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
charges under section 8(e) of the Federal Deposit Insurance Act
("Act"), 12 U.S.C. § 1818(e), and the FDIC Rules of Practice
and Procedure,
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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 PARTICIPATION ("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 and breaches of
fiduciary duty, 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 violations of law
or regulation, unsafe or unsound banking practices, and breaches of
fiduciary duty as an institution-affiliated party of The Foster Bank,
Chicago, Illinois ("Bank");
(b) By reason of such violations, unsafe or unsound banking practices,
and breaches of fiduciary duty, the Bank has suffered or will probably
suffer financial loss or other damage and the interests of the Bank's
depositors have been or could be prejudiced; and
(c) Such violations, unsafe or unsound banking practices, and breaches
of fiduciary duty involve personal dishonesty on the part of the
Respondent or demonstrate the Respondent's willful and/or continuing
disregard for the safety and soundness of the Bank.
The FDIC further determined that such violations, unsafe or
unsound banking practices, and breaches of fiduciary duty 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. Respondent is hereby, without the prior written approval 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), prohibited from:
[.1] (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.
2. 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.
Pursuant to delegated authority.
Dated this 10th day of March, 2004.