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FDIC Enforcement Decisions and Orders |
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Bank director removed from office and prohibited from further participation in the affairs of the bank. The bank acquired a Telex machine which the director allegedly used to receive and send messages concerning multi-million dollar financial transactions, none of which appear to have benefitted the bank.
[.1] Prohibition, Removal, or SuspensionTransactions Not Benefitting Bank
In the Matter of* * * (INSURED
The Board of Directors (the "Board") of the Federal Deposit Insurance Corporation (the "FDIC") issued to * * * a NOTICE OF INTENTION TO REMOVE FROM OFFICE AND ORDER OF SUSPENSION FROM OFFICE AND OF PROHIBITION FROM PARTICIPATION (the "NOTICE"). The NOTICE charged * * * with having engaged and participated in unsafe or unsound banking practices. In addition, the NOTICE charged * * * with having committed or having engaged in acts, omissions or practices which constituted breaches of his fiduciary duty to * * * Bank.
FINDINGS OF FACT AND CONCLUSIONS OF LAW
1. The Board finds as facts the allegations of Paragraphs 1 through 6 of the NOTICE, a copy of which is attached hereto and made a part hereof by reference thereto.
ORDER OF REMOVAL AND OF PROHIBITION FROM PARTICIPATION
1. * * * is hereby removed as an officer and/or director of * * * Bank, * * *.
ORDER OF SUSPENSION FROM OFFICE AND OF PROHIBITION FROM PARTICIPATION
In consideration of the acts, omissions and practices which * * * is alleged to have committed, engaged in, or participated in as specified in the foregoing NOTICE OF INTENTION TO REMOVE FROM OFFICE, and taking into consideration the fact that these practices, omissions and acts evidence a pattern of personal dishonesty or willful or continuing disregard for the safety and soundness of the Bank, and taking into consideration the financial position of the Bank, the FEDERAL DEPOSIT INSURANCE CORPORATION deems it necessary for the protection of * * * Bank and the interests of its depositors that * * * be suspended from office as a director of the Bank and prohibited from further participation in any manner in the affairs of the Bank, and the Corporation hereby issues this ORDER OF SUSPENSION FROM OFFICE AND PROHIBITION FROM PARTICIPATION, and notice is hereby given, pursuant to Section 8(e)(3) of the Federal Deposit Insurance Act (12 U.S.C. § 1818(e)(3)), that * * *, Respondent, be, and hereby is, suspended as a director of * * * Bank and prohibited from further participation in any manner in the conduct of the affairs of * * * Bank, pending the completion of the administrative proceedings instituted pursuant to the foregoing NOTICE OF INTENTION TO REMOVE FROM OFFICE. This ORDER OF SUSPENSION AND PROHIBITION FROM PARTICIPATION becomes effective immediately upon service thereof.
ORDER OF APPROVAL AND RECOMMENDATION
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1. The "STIPULATION AND CONSENT" referred to herein is hereby approved.
STIPULATION AND CONSENT FDIC-80-69(e) |
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Last Updated 6/6/2003 | legal@fdic.gov |