TO THE OFFICER IN CHARGE OF SUPERVISION
AT EACH FEDERAL RESERVE BANK
In accordance with the provisions of most written
agreements and cease and desist orders with state member banks and
bank holding companies, the Director of Banking Supervision and
Regulation must approve all dividend payments. Current procedures
require Reserve Banks to submit a copy of the dividend request and
a memorandum supporting a recommended action to the Director. A
letter communicating the Director's decision is then sent directly
to the bank or bank holding company from the Board.
Effective immediately, these procedures are being revised
to permit the responsible Reserve Bank officer to sign and transmit
the decision letter on the dividend request directly to the bank or
bank holding company. All other elements of the review and
approval process remain essentially intact; however, to facilitate
processing, Reserve Banks are requested to send the copy of the
dividend request and supporting memoranda directly to Jack
Jennings, Assistant Director (Mail Stop 154), as well as a copy of
the proposed letter to be sent to the bank or bank holding company.
Approval or denial by the Director or his designee is still
required and will be transmitted in a letter to the Reserve Bank
along with any modifications to the proposed letter.
Any questions regarding this procedure should be directed
to Jack Jennings, Assistant Director, on ext. 3053.
James I. Garner
SR letters | 1993