The Department of Banking News Bulletin
Bulletin # 2321
Week Ending August 15, 2008
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.
BRANCH ACTIVITY
State Bank Activity
State Bank Activity
Section 36a-145 of the 2008 Supplement to the 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 Financial Institutions Division, (860) 240-8180.
| Date | Bank | Location | Activity |
|---|---|---|---|
| 8/07/08 |
Fairfield County Bank
Ridgefield |
*840-860 East Main Street
Stamford, CT 06902 |
filed |
|
8/12/08 |
Newtown Savings
Bank
Newtown |
FROM: 3 Pomeraug Office Park
Southbury, CT 06488
TO: 33 Brown Rd at Main St So.
Southbury, CT 06488 |
approved
to relocate |
| 8/12/08 |
Newtown Savings
Bank
Newtown |
FROM: 952 White Plains Road
Trumbull, CT 06611
TO: 962 White Plains Road
Trumbull, CT 06611 |
approved
to relocate |
| 8/18/08 |
Liberty Bank
Middletown |
171 Silas Deane Highway
Wethersfield, CT 06109 |
opening
date |
| *Erroneously filed as 840-850 East Main Street | |||
ACQUISITION
On August 15, 2008, pursuant to Section 36a-185 of the Connecticut General Statutes, the Commissioner issued a notice of intent not to disapprove the acquisition by BNC Financial Group, Inc., of 100 percent of the voting securities of The Bank of Fairfield, Fairfield, Connecticut.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
SIGN UP NOW FOR SECURITIES FORUM 2008
The Securities and Business Investments Division, in conjunction with the Securities Advisory Council to the Department, is sponsoring its 20th annual Securities Forum conference on Thursday, October 23, 2008 at the Sheraton Hotel in Stamford, Connecticut. A timely and outstanding agenda of panel presentations, featuring expert speakers, will help financial industry professionals keep abreast of current and evolving regulatory developments. Stephen A. Ross, Franco Modigliani Professor of Financial Economics at Massachusetts Institute of Technology (MIT), will deliver the keynote address. With more than 35 years of research and teaching to his credit, Dr. Ross has had a major impact on the field of finance, and has authored more than 100 related articles. Among other things, he invented the Arbitrage Pricing Theory and conducted cutting edge studies in the areas of financial derivatives and interest rate models. Models developed by Dr. Ross and his coworkers are now standards for pricing in major securities trading firms. Dr. Ross is also the Chief Investment Officer and Principal of Ross Institutional Investors, LLC, a firm managing portfolios of alternative investments, and the Chairman of Compensation Valuation, Inc., a leading provider of option valuation services. Dr. Ross is on the board of directors of the Freddie Mac where he chairs the Finance and Capital Deployment Committee. The registration fee (which includes materials and luncheon) is $70 per person, but if you register by September 26, 2008, you qualify for the Early Bird discount of $60 per person. Multiple attendees from the same firm also pay a discounted rate of $60. To download a registration form and to read the planned agenda, go to: http://www.ct.gov/dob/cwp/view.asp?a=2249&q=420578.
Stipulation Agreement
On August 11, 2008, the Banking Commissioner entered into a Stipulation and Agreement with Managers Distributors, Inc., a Connecticut-registered broker-dealer located at 800 Connecticut Avenue, 4th Floor, Norwalk, Connecticut; Peter Michael Lebovitz, president of Managers Distributors, Inc.; and Thomas Grant Hoffman, Director of Investment Research for Managers Investment Group LLC, an affiliated investment adviser. The Stipulation and Agreement alleged that, from approximately October 2000 to September 2002, Lebovitz and Hoffman failed to take appropriate managerial action reasonably designed to achieve compliance with firm directives concerning frequent trading in the securities of The Managers Funds and to ensure that related books and records were maintained by Managers Distributors, Inc., in violation of Section 36b-31-6f(e) of the Regulations under the Connecticut Uniform Securities Act. The Stipulation and Agreement also alleged that, during the same time frame, Managers Distributors, Inc. failed to enforce a supervisory system reasonably designed to achieve compliance with applicable securities laws and regulations and to keep written records concerning frequent trading in fund securities with clients, including instructions relating to the frequency of those trades, in violation of Section 36b-14(a) of the Act and Section 36b-31-6f(b) of the Regulations.
Pursuant to the Stipulation and Agreement, Managers Distributors, Inc., Lebovitz and Hoffman agreed to refrain from regulatory violations. In addition, Managers Distributors, Inc. agreed to 1) pay a $25,000 fine and remit an additional $25,000 to the department as reimbursement for investigative costs, for a total of $50,000; 2) contribute $300,000 to the State of Connecticut Department of Education to promote financial literacy in Connecticut public middle schools; 3) implement revised supervisory and compliance procedures; 4) retain an experienced independent compliance consultant to conduct at least three annual risk assessments and compliance reviews of the firm’s internal procedures; and 5) provide an annual written certification for two years to the Board of Trustees of The Managers Funds and to the department stating that the firm’s supervisory and compliance procedures were reasonably designed to prevent and detect regulatory violations.
Dated: Tuesday, August 19, 2008
Howard F. Pitkin
Banking Commissioner