FDIC ISSUES REMOVAL AND PROHIBITION ORDER
AND CIVIL MONEY PENALTY AGAINST FORMER KENTUCKY BANKER
FOR IMMEDIATE RELEASE PR-127-2003 (12-18-2003)
Media Contact: Frank Gresock 202-898-6634
The Federal Deposit Insurance Corporation (FDIC) in November issued a removal and prohibition order and imposed a $2,500 civil money penalty against Barry S. Armstrong.
Armstrong was a director and the president of The Peoples Bank, Mount Washington, KY.
Armstrong consented to the orders without admitting or denying culpability. The FDICs actions are based on allegations that Armstrong circumvented regulatory lending limits by diverting loan proceeds to accounts he controlled.
Under the orders, Armstrong is prohibited from further participation in the banking industry without prior FDIC approval.
The orders are attached.
Docket No. FDIC-03-145e
Docket No. FDIC-03-146k
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 9,237 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars - insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov or through the FDIC's Public Information Center (877-275-3342 or (703) 562-2200).