Appeals of Material Supervisory Determinations: Guidelines
SARC-99-06 (November 24, 1999)
The Supervision Appeals Review Committee (the “Committee”)
has considered your appeal relative to the apparent violations cited and the
resulting ratings assigned in the Federal Deposit Insurance Corporation’s
(“FDIC”) April 19, 1999 Report of Examination-Trust Department (the
“Report”), of [Bank] (“Bank”).
The Committee has resolved the appeal in favor of the
Bank. Accordingly, the apparent violation of the Internal Revenue Code of
1986 and related regulations of the United States Department of the
Treasury, and the Employee Retirement Income Security Act of 1974 (“ERISA”)
with respect to the Bank’s Employee Stock Ownership Plan (the “ESOP”) cited
as set forth on pages 14-15 of the Report under the headings “Apparent
Violations Involving The Bank’s Retirement Plan” and “Other Violations” are
hereby withdrawn from the Report.
As a result of this revision, the Component Ratings
related to “Management” and “Compliance” assigned at the examination are
changed from “3” to “2” and, as a result, the overall Composite Rating is
revised from “3” to “2”. The Dallas Regional Office has informed us that, as
a result of the Committee’s action, the proposed Memorandum of Understanding
is being withdrawn. Please contact the Dallas Regional Office if you have
Please note that this decision by the Committee does not
impact upon the jurisdiction of the United States Department of Labor to
interpret and enforce ERISA’s requirements. Similarly, this decision by the
Committee does not affect the jurisdiction of the Internal Revenue Service
to interpret and enforce its ESOP regulations. The FDIC will not, however,
provide information regarding the transaction to the Department of Labor
under the interagency ERISA referral agreement of 1980.
In accordance with the Guidelines for Appeals of Material
Supervisory Determinations published at 60 Fed. Reg. 15923 (March 28, 1995),
the scope of this review was limited to the facts and circumstances that
existed at the time of the examination.
This determination is considered the Federal Deposit
Insurance Corporation’s final supervisory decision.
By direction of the Supervision Appeals Review Committee
of the Federal Deposit Insurance Corporation.