DOB: News Bulletin 1870 - December 24, 1999

The Department of Banking News Bulletin 

Bulletin # 1870
Week Ending December 24, 1999

This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to John P. Burke, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail to john.burke@ct.gov. Written comments will be considered only if they are received within ten days from the date of this bulletin.


STATE BANK ACTIVITY
Branch Activity

Section 36a-145 of the Connecticut General Statutes requires that each application for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided. Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days. Questions concerning branch activity should be directed to the Bank Examination Division, (860) 240-8180.
Note: dates are listed in month/day/year format.

Date Bank Location Activity
12/20/99 Savings Bank of Danbury
Danbury
35 West Street
Danbury, CT 06810
opening
date
12/20/99 People's Bank
Bridgeport
Old Avon Village
25 East Main Street
Avon, CT 06001
approved
12/20/99 People's Bank
Bridgeport
Northwood Shopping Plaza
135 Lowery Place
Newington, CT 06111
approved
12/21/99 People's Bank
Bridgeport
10 Frontage Road
East Haven, CT 06512
approved
12/21/99 Union Savings Bank
Danbury
FROM: 20 Church Hill Road
          Newtown, CT 06470
TO:     1A Commerce Road
          Newtown, CT 06470
approved
to
relocate
12/22/99 People's Bank
Bridgeport
* Duncaster
   40 Loeffler Road
   Bloomfield, CT 06002
approved
* Limited Branch - Special Needs

ACQUISITION AND MERGER

On December 21, 1999, in connection with the application filed by Summit Bancorp on November 22, 1999, pursuant to Sections 36a-411 and 36a-184 of the Connecticut General Statutes, and the application filed by Summit Bank pursuant to Section 36a-125 of the Connecticut General Statutes, which was joined by NMBT on December 8, 1999, Summit Bancorp, Summit Bank, and NMBT have filed a community reinvestment plan which is available for public inspection and comment at the Department of Banking for a period of 30 days.

SECTION 36a-425 APPLICATION

On December 20, 1999, an application was filed by Mellon Financial Corporation, a Pennsylvania corporation, to establish an office of its subsidiary, The Boston Company Financial Services, Inc., a Massachusetts corporation, at One East Weaver Street, Greenwich, Connecticut.

SECTION 36a-425 APPROVAL

On December 20, 1999, approval was granted to Republic Security Financial Corporation, a Florida corporation, to establish an office of its subsidiary, RS Maritime Corporation, a Delaware corporation, at 1000 Bridgeport Avenue, Suite 501, Shelton, Connecticut.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Broker-dealer Fined $1,500 for Unregistered Branch Office Activity

On December 21, 1999, the Banking Commissioner entered a Consent Order with respect to Mason Securities, Inc., a registered broker-dealer having its principal office at 11800 Sunrise Valley Drive, #550, Reston, Virginia. The Commissioner's action was predicated on claims that, from approximately September 1994 through September 1999, the firm transacted business from an unregistered branch office in violation of Section 36b-6(d) of the Connecticut Uniform Securities Act. The branch office was staffed by Andrew R. Flagg who had been the subject of a September 16, 1999 Consent Order by the Commissioner.

The Consent Order fined Mason Securities, Inc. $1,500 and required that it take steps to enhance its supervision of Flagg's securities activities, including conducting an annual branch office audit of any Connecticut branch office staffed by Flagg. In addition, the Consent Order required that the firm provide quarterly reports to the department for two years concerning any securities-related complaints, actions or proceedings initiated by Connecticut residents and relating to any of the firm's Connecticut branch offices or agents.

NOTICE OF INTENT TO AMEND PROPOSED REGULATIONS

Pursuant to Section 4-168(a) of the Connecticut General Statutes, the Banking Commissioner is issuing a Notice of Intent to Amend Regulations concerning assets required to be kept on deposit by foreign banks with a licensed state branch or licensed state agency. A copy of the proposed regulations is attached.

Dated: Tuesday, December 28, 1999

John P. Burke
Banking Commissioner

NOTICE OF INTENT TO AMEND REGULATIONS

In accordance with Section 4-168(a) of the Connecticut General Statutes, and by the authority granted in Section 36a-428(c) of the Connecticut General Statutes, notice is hereby given that the Banking Commissioner intends to amend regulations concerning assets required to be kept on deposit by foreign banks with a licensed state branch or licensed state agency.

Text of Proposed Regulations:

Assets Required to be Kept on Deposit by Foreign Banks
With a Licensed State Branch or Licensed State Agency

The Regulations of Connecticut State Agencies are amended by adding Subsection (d) of Section 36a-428c-4 to read as follows:

(NEW) (d) For purposes of this section, liabilities arising from securities repurchase agreements may be excluded from the calculation of adjusted liabilities, to the extent such liabilities are secured by collateral within the meaning of Section 36a-428n(i)(2)(D) of the Connecticut General Statutes unless the licensed state branch or licensed state agency has been notified otherwise by the Commissioner.

Statement of Purpose: To exclude certain liabilities arising from securities repurchase agreements in computing the assets that must be kept on deposit in Connecticut by a foreign bank with a licensed state branch or licensed state agency.

All interested persons who wish to submit data, views or arguments in connection with the amendment of the proposed regulation may do so in writing within thirty (30) days of the publication of this notice in the Connecticut Law Journal. Comments may be submitted to the Banking Commissioner, Attention: Legal Division, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103.