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FDIC Enforcement Decisions and Orders |
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A civil money penalty was assessed against a bank director for making improper loans and extending credit to a bank's affiliate and its majority shareholder when the director failed to file an answer to a Notice of Hearing.
[.1] Civil Money PenaltiesNotice of AssessmentTime to Answer
[.2] Civil Money PenaltiesNotice of AssessmentTime to Answer
[.3] Civil Money PenaltiesNotice of AssessmentFailure to Answer
I. Procedural History
This proceeding, brought by the Federal Deposit Insurance Corporation ("FDIC"), seeks a civil money penalty against * * * ("Respondent"), individually and as a director of * * * Bank, * * *, for violation of sections 23A and 22(h) of the Federal Reserve Act (12 U.S.C. §§371c(a) and 375(b)) and Regulation O of the Board of Governors of the Federal Reserve System (12 C.F.R. Part 215) (improper loans and extensions of credit to a bank's affiliate and to its majority shareholder). These provisions apply to state nonmember banks pursuant to section 18(j)(2) of the Federal Deposit Insurance Act (the "Act") (12 U.S.C. § 1828(j)(2)).
II. Discussion
[.1] Section 308.06 of the FDIC Rules provides:
[.2] Furthermore, consistent with this provision, the Notice of Hearing specifically put Respondent on notice of the obligation to file an Answer. The Notice of Hearing states:
ORDER TO PAY CIVIL MONEY
The Board has reviewed the record in this proceeding, including the Administrative Law Judge's Recommended Decision and finds * * * to have violated section 23A and 22(h) of the Federal Reserve Act (12 U.S.C. §§ 371c and 375b) and Regulation O of the Board of Governors of the Federal Reserve System (12 C.F.R. Part 215).
RECOMMENDED DECISION
Recommended Decision
[.3] On this 26th day of January, 1987, the Motion for Recommended Decision filed by the Federal Deposit Insurance Corporation (FDIC) came on to be heard. After considering the arguments and exhibits herein pertaining to the failure and/or refusal of the Respondent * * * to file an answer as specified in Section 308.06 of the FDIC Rules of Practice and Procedures (12 C.F.R. section 308.06) and page eight of the Notice of Assessment of Civil Money Penalties, Findings of Fact and Conclusions of Law, Order to Pay, and Notice of Hearing ("Notice") it is found that Respondent * * * has failed to file and answer within the time required by Section 308.06(a) of the FDIC Rules of Practice and Procedures (12 C.F.R. section 308.06(a)). Furthermore, having been notified of the time and place of two pre-hearing conferences the respondent also has failed to appear, send a representative, or request postponement of these proceedings. Pursuant to Section 308.06(d) of the FDIC Rules of Practice and Procedures (12 C.F.R. section 308.06(d)) I find that the Respondent is deemed to have waived his right to appear and contest the allegations of the notice of hearing. I find the facts to be as alleged in the Notice. |
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Last Updated 6/6/2003 | legal@fdic.gov |