DOB: Bulletin 2446 - Jan. 7, 2011

The Department of Banking News Bulletin 

Bulletin # 2446
Week Ending January 7, 2011

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 Howard F. Pitkin, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail. 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 2010 Supplement to the General Statutes requires certain applications 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 Financial Institutions Division, (860) 240-8180.
 
Date Bank Location Activity
01/06/11
NewAlliance Bank
New Haven
2386 Summer Street
Stamford, CT  06905
approved
 
Acquisition Withdrawn
 
On January 3, 2011, the acquisition statement and merger application filed on March 25, 2010, pursuant to Sections 36a-184 and 36a-126(a), respectively, of the Connecticut General Statutes, in connection with the indirect acquisition by Fairfield County Bank Corp., a federal holding company organizing as a subsidiary holding company of Fairfield County Bank, MHC, of 100% of the issued and outstanding shares of common stock of Fairfield County Bank were withdrawn.  The acquisition was to take place through the merger of Fairfield Interim Bank, a bank organizing under federal law as a wholly-owned subsidiary of Fairfield County Bank Corp., with and into Fairfield County Bank.
 

CREDIT UNION ACTIVITY
Branch Activity
 
Date Credit Union Location Activity
12/23/10
Sikorsky Financial Credit
   Union, Inc., Stratford
Seymour High School
2 Botsford Road
Seymour, CT  06483
filed
01/06/11
Connex Credit Union
North Haven
FROM: 227 Church Street
         New Haven, Ct 06510
TO:    2 Whitney Avenue
         New Haven, CT 06510
approved
to relocate
 

CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity
 
Date Check Casher Location Activity
01/07/11
Wilson Travel and Grocery, LLC
170 Riverside Avenue
Bristol, CT  06010
approved
 
 
 
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Orders
On December 17, 2010, the Banking Commissioner entered a Consent Order with respect to Goldman, Sachs & Co., a broker-dealer registered under the Connecticut Uniform Securities Act.  The firm maintains its principal office at 200 West Street, New York, New York.  The settlement followed a coordinated multi-state investigation into the firmís activities in connection with the sale of auction rate securities (ARS).  The Consent Order acknowledged that the firm had repurchased at par, and on the same terms and conditions, all Eligible ARS from Eligible Investors nationally who accepted and complied with the terms and conditions of the firmís ARS repurchase offer.  The Consent Order alleged that, in connection with the marketing of ARS 1) the firm failed to reasonably supervise its agents to ensure that all of the firmís clients would be sufficiently apprised of ARS, the mechanics of the auction process and the potential  illiquidity of ARS; and 2) the firm engaged in unethical practices within the meaning of Section 36b-4(b) of the Act.   The Consent Order fined the firm $1,014,903.35, and required that it cease and desist from regulatory violations.
 
On December 29, 2010, the Banking Commissioner entered a Consent Order with respect to Wachovia Securities, LLC, now known as Wells Fargo Advisors, LLC, a Connecticut-registered broker-dealer having its principal office at One North Jefferson Avenue, St. Louis, Missouri.  The Consent Order alleged that the firm failed to establish, enforce and maintain an adequate supervisory system in overseeing the activities of Daniel Charles Allegrini (CRD No. 2962754), an ex-broker-dealer agent of the firm.  According to the Consent Order, Allegrini issued, and recommended to a certain Wachovia Securities, LLC client, unregistered promissory notes that were not suitable for the client based on the clientís financial situation and needs.  The Consent Order added that Allegrini acted outside the regular course or scope of his employment with the firm in selling the notes and in receiving compensation for referring brokerage and bank clients to an associate for the purpose of investing in other interest-paying promissory notes.  Allegrini allegedly did not provide the firm with prior written notice of such activities, nor were the transactions recorded on the firmís books and records.
 
The Consent Order fined the firm $75,000 and directed it to cease and desist from regulatory violations.
 
 
       Dated:  Tuesday, January 11, 2011
 
       Howard F. Pitkin
       Banking Commissioner