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FDIC Enforcement Decisions and Orders |
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The FDIC Board rejects the recommendation of a hearing officer and rules that the Section 32 proceeding to determine a applicant's fitness to serve as an officer of a troubled bank is moot because the bank has closed and the position in question is no longer available.
[.1] FDI Act Section 32Standing to Initiate Proceedings
[.2] FDI Act Section 32Proceedings Moot
In the Matter of
This proceeding arises out of a Notification of Addition of a Director or Employment of a Senior Executive Officer ("Notification"), submitted March 11, 1991, to the Kansas City Regional Office of the Division of Supervision, Federal Deposit Insurance Corporation ("FDIC"), by the Bank of Bellevue, Bellevue, Nebraska ("Bank"). The Notification seeks approval, under section 32 of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1831i ("Section 32"), for the employment of Donald E. Thompson ("Petitioner") as vice president/senior lending officer of the
A. Standing To bring A Section 32 Proceeding.
[.1] The Board is of the view that Petitioner lacked standing to initiate this proceeding because the Bank withdrew the Notification before a notice of disapproval was issued by the agency. Section 32(a) provides that "[a]n insured depository institution. . . shall notify the appropriate Federal Banking agency of the proposed. . .employment of an individual as a senior executive officer ..." 12 U.S.C. § 1831i(a). There is no statutory or regulatory authority for the submission of a notification by the individual whom the bank proposes to employ, or for the reinstatement by the applicant of a notification which has been withdrawn by the bank.
[.2] The record in this proceeding reflects that the Bank was "merged out of existence on May the 1st, 1992," Tr. at 366.5 Consequently, the specific position at issue, in relation to which Petitioner's competence must be evaluated, is no longer available.
The Board concludes that this proceeding has been rendered moot be the fact that the Bank no longer exists. The applicant's competence under Section 32 must be evaluated in relation to the particular institution involved, the specific position offered and any special needs of the institution. Because the position in question is no longer available, Petitioner's competence for that position is no longer an issue and hence the proceeding should be terminated and the Notice of Disapproval should be rescinded.
The Board of Directors of the Federal Deposit Insurance Corporation, having considered the entire record in this proceeding, and having determined that this proceeding concerning Petitioner's competence to serve as vice president/senor lending officer at Bank of Bellevue, Bellevue, Nebraska, is moot because the position is no longer available, hereby declines to adopt and vacates the Recommended Decision of the Presiding Officer. |
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Last Updated 6/6/2003 | legal@fdic.gov |