Small Banks Told Not to Let Federal Regulatory Agencies Bully Them; Fight Back, Says Independents' Lawyer

By Fraust, Bart | American Banker, March 27, 1984 | Go to article overview

Small Banks Told Not to Let Federal Regulatory Agencies Bully Them; Fight Back, Says Independents' Lawyer


Fraust, Bart, American Banker


Small Banks Told Not to Let Federal Regulatory Agencies Bully Them; Fight Back, Says Independents' Lawyer

Small banks should not let federal regulatory agencies bully them into consenting to enforcement actions, the top lawyer for the Independent Bankers Association of America said Monday.

"If a banker consents to informal written agreements or cease-and-desist orders, he has signed a confession,' said Leonard J. Rubin, the association's general counsel.

"The effect is you're waiving procedural rights that the statutes say you have.'

Mr. Rubin, who also is an attorney for the Washington law firm of Becker, Gurman, Meyers, O'Brien & McGowan, made the remarks at a session on federal bank regulatory powers and procedures. The talk was part of the IBAA's annual meeting, which will continue here through Thursday.

Between 1971 and 1976, the Office of the Comptroller of the Currency instituted a total of 91 enforcement proceedings against national banks, Mr. Rubin said.

In 1981, he added, the number rose to 128 and in 1982 to 175.

During the first six months of 1983, the latest date for which figures are available, the Comptroller's office instituted 171 enforcement actions.

Of the 175 enforcement actions against banks in 1982, 150 were for banks with assets under $100 million. Of the 171 enforcement actions in the first half of 1983, 138 were against small banks.

The high percentage of small banks involved in enforcement proceedings can partly be explained by the fact that there are simply more small banks than large ones.

Still, Mr. Rubin said, the small bank percentages are "astonishingly high. Small banks are clearly on the wrong end of the enforcement proceedings,' he added.

"The official explanation is that the small banks don't have the management resources to deal with asset-quality problems, and they don't have staff counsel to review compliance,' the IBAA attorney said.

The real reason is that small banks do not fight the enforcement proceedings, Mr. Rubin added.

"You know it, and the regulatory agencies know it,' he said.

Know Your Rights

Because enforcement proceedings are as time-consuming for the regulators as they are for the banks, the agencies count on the consent of small banks, the attorney said.

Mr. Rubin noted that there are rights and liabilities associated with enforcement proceedings.

"The regulators never point out the rights or the consequences of not asserting those rights,' he said. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Small Banks Told Not to Let Federal Regulatory Agencies Bully Them; Fight Back, Says Independents' Lawyer
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.