DOB: News Bulletin 1950 - July 6, 2001

The Department of Banking News Bulletin 

Bulletin # 1950
Week Ending July 6, 2001

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, Commissioner of Banking, 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.


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The Department of Banking now offers a free service to deliver the News Bulletin directly to you by E-mail on the day that it is issued. To subscribe to this new service, please visit the Department's Web site. If you no longer wish to receive a printed copy of the News Bulletin by postal mail, please contact jeanne.charbonneau@ct.gov.

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
7/05/01 Ridgefield Bank  
Ridgefield
506 Westport Avenue   
Norwalk, CT 06851
approved

APPLICATION FEE CHANGES

Effective July 1, 2001, pursuant to the provisions of Public Act 01-183, An Act Concerning Bank Transactions, changes were made to certain Department of Banking application fees, some of which apply to branching. In part, the Act reduced or eliminated the fees payable on certain branch-related activities. These include the sale of a branch by a Connecticut bank to another Connecticut bank, the relocation of a branch or limited branch, the conversion of a branch to a limited branch, the conversion of a limited branch to a branch, and, in certain cases, the establishment of an out-of-state branch. When an application form for a specific transaction has been available through the Department of Banking's Web site, the application has been amended to reflect these fee changes. Please use the current Web site form, or request a printed copy from our office. A full text copy of the Act, detailing other fee changes, is available through a link on the Department of Banking's Web site, at http://www.ct.gov/dob.

REPRESENTATIVE OFFICE

On July 5, 2001, pursuant to Section 36a-428g of the Connecticut General Statutes, the Commissioner issued a license to Royal Bank of Canada to establish and maintain a representative office at 1 East Weaver Street, 3rd Floor, Greenwich, Connecticut.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Broker-dealer Agent Sanctioned for Unregistered Agent Activity

On July 3, 2001, the Commissioner executed a Stipulation and Agreement with respect to Kevin Brian Barry, currently a registered broker-dealer agent of Bengal Partners, LLC. The Stipulation and Agreement alleged that between January 1996 and approximately April 2001, respondent Barry transacted business as an agent of Southport Securities, LLC absent registration under Section 36b-6 of the Connecticut Uniform Securities Act. The Stipulation and Agreement acknowledged the respondent's representation that he had submitted all required registration paperwork to the firm, and had relied upon the firm to ensure that the registration process had been completed. The respondent had also provided the Division with a copy of the Form U-4 previously submitted to the firm.

Pursuant to the Stipulation and Agreement, respondent Barry agreed to pay a $500 fine and to complete the Regulatory Element of the Securities Industry Continuing Education Program within ninety days.

Broker-dealer Assessed $1,750 for Unregistered Branch Activity

On July 6, 2001, the Commissioner entered a Consent Order with respect to Salomon Smith Barney Inc. of 388 Greenwich Street, New York, New York. Salomon Smith Barney Inc. is a registered broker-dealer under the Connecticut Uniform Securities Act. The Consent Order alleged that the firm had transacted business from an unregistered branch office located at 19 Halls Road in Old Lyme in violation of Section 36b-6(d) of the Act.

Noting that the Old Lyme operations had ceased, the agency directed the firm to revise and implement supervisory and compliance procedures reasonably designed to prevent and detect violations of state branch office registration provisions. The Consent Order also required that the firm pay $1,750 to the agency, $1,500 of which constituted an administrative fine, $100 of which represented past due branch office registration fees and $150 of which constituted reimbursement for Division investigative costs.

Broker-dealer Assessed $10,000 for Supervisory Lapse
in Conjunction With Agent's Private Securities Transactions

On July 6, 2001, the Commissioner issued a Consent Order with respect to Lighthouse Securities, Ltd., a broker-dealer registered under the Connecticut Uniform Securities Act and having its principal office at 241 Main Street, Hartford, Connecticut. The Consent Order was based on claims that, from at least April 1997 through December 1, 1997, the firm violated Section 36b-31-6f(b) of the Regulations under the Act by not properly supervising the activities of its former agent, Paul Golub, who purportedly engaged in private securities transactions.

The Consent Order directed Lighthouse Securities, Ltd. to cease and desist from regulatory violations and to pay $10,000 to the department. Of that amount, $5,000 constituted an administrative fine, $2,500 represented reimbursement for Division investigative costs and $2,500 was to be allocated to the Division's Investor Education Program. The Consent Order also required that the firm file quarterly reports for two years concerning any securities complaints, actions or proceedings involving Connecticut residents.

Dated: Tuesday, July 10, 2001

John P. Burke
Banking Commissioner