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[¶ 10,030A] In the Matter of Gayle L. Schroder, Docket No. FDIC-88-225e (12-6-89).
Director and officer prohibited for 10 years from further participation in the affairs of, and from the exercise of voting rights in, any insured bank.
[.1] Prohibition, Removal, or Suspension—Prohibition—Service as Director, Officer, or Employee
[.2] Prohibition, Removal, or Suspension—Prohibition—Voting for Directors
[.3] Prohibition, Removal, or Suspension—Prohibition—Exercise of Voting Rights
[.4] Prohibition, Removal, or Suspension—Prohibition—Participation in the Affairs of Any Insured Bank
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In the Matter of
GAYLE L. SCHRODER, individually
and
as an officer and director and as a
person participating in the conduct of
the affairs of
FIRST AMERICAN BANK & TRUST
OF BAYTOWN
BAYTOWN, TEXAS
(Insured State Nonmember Bank—in Receivership)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
Gayle L. Schroder ("Respondent"), having received a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC") on September 30, 1988 and detailing the violations of law or regulations, the unsafe or unsound practices, and/or the breaches of fiduciary duties alleged to have been committed by Respondent, individually and in his capacity as a director and/or officer and/or person participating in the conduct of the affairs of First American Bank and Trust of Baytown, Baytown, Texas, in Receivership, ("Bank"), which, in the opinion of the FDIC, resulted in substantial financial loss or other damage to the Bank, and demonstrate a willful or continuing disregard for the safety and soundness of the Bank, and evidence Respondent's unfitness to participate in the conduct of the affairs of the Bank, or any other bank insured by the FDIC, and having been advised of his right to a hearing on the alleged charges pursuant to section 8(e) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(e), and Part 308 of the Rules and Practices and Procedures, 12 C.F.R. Part 308, and having waived those rights, 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 2, 1989, whereby solely for the purpose of this proceeding and without admitting any violations of law or regulations, unsafe or unsound practices, and/or breaches of fiduciary duties, 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 engaged in violations of law or regulations, unsafe or unsound practices, and/or breaches of fiduciary duties in his capacity as a director and/or officer and/or person participating in the conduct of the affairs of the Bank, which resulted in substantial financial loss or other damage to the Bank, and which demonstrate a willful or continuing disregard by Respondent for the safety and soundness of the Bank, and evidence Respondent's unfitness to participate in the conduct of the affairs of the Bank, or any other bank insured by the FDIC. The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
[.1] 1. IT IS HEREBY ORDERED, that for a period of ten (10) years from the effective date of this Order, Gayle L. Schroder shall not serve or act as a director, officer, or employee of any bank insured by the FDIC without the prior written approval of the appropriate Federal banking agency, as that term is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q).
[.2] 2. FURTHER ORDERED, that for a period of ten (10) years from the effective date of this Order, Gayle L. Schroder shall not directly or indirectly vote for any director of any bank insured by the FDIC without the prior written approval of the appropriate Federal banking agency, as that term is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q).
[.3] 3. FURTHER ORDERED, that for a period of ten (10) years from the effective date of this Order, Gayle L. Schroder shall not directly or indirectly solicit or procure, or transfer or attempt to transfer, or vote or attempt to vote, proxies, consents, or authorizations in respect of any voting rights in any bank insured by the FDIC without the prior written approval of the appropriate Federal banking agency, as that term is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q).
[.4] 4. FURTHER ORDERED, that for a period of ten (10) years from the effective date of this Order, Gayle L. Schroder shall not participate in any manner in the conduct of the affairs of any bank insured by the FDIC without the prior written approval of the appropriate Federal banking agency, as
{{12-31-92 p.C-152.2}}that term is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q).
This ORDER shall become effective ten 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.
Dated at Washington, D.C. this 6th day of December, 1989.
Pursuant to delegated authority.
