The Department of Banking News Bulletin 

Bulletin # 1999
Week Ending June 14, 2002

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.

BRANCH ACTIVITY
State Bank 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.

ACQUISITIONS

On June 10, 2002, pursuant to Section 36a-184 of the Connecticut General Statutes, an acquisition statement was filed by Russell Fuchs to acquire more than 10% but less than 25% of the authorized shares of the Bank of Westport, a Connecticut bank.

On June 6, 2002, pursuant to Section 36a-184 of the Connecticut General Statutes, an acquisition statement was filed by Gordon Gund-Grant Gund Trust and Gordon Gund-G. Zachary Gund Trust to acquire more than 10% but less than 25% of the voting securities of Connecticut River Community Bank, a Connecticut bank (in organization). In connection with the acquisition statement, on June 12, 2002, Gordon Gund-Grant Gund Trust and Gordon Gund-G. Zachary Gund Trust filed a community reinvestment plan, which is available for public inspection and comment at the Department of Banking for a period of 30 days.

CONNECTICUT'S OPT-IN FINANCIAL PRIVACY LAWS NOT PREEMPTED

On April 19, 2001, the Commissioner petitioned the Federal Trade Commission ("FTC") for a determination, under 12 U.S.C. § 6807, as to whether Connecticut's financial privacy laws, Section 36a-41 et seq. of the Connecticut General Statutes, are preempted by the Gramm-Leach-Bliley Act ("GLBA"). On June 7, 2002, the FTC issued a response in which it concluded that it did not see an "inconsistency" between Connecticut laws and federal laws. Accordingly, Connecticut law is not preempted by GLBA, and financial institutions subject to Connecticut's financial privacy laws must comply with their opt-in provisions. A copy of the FTC opinion is available at www.ct.gov/dob/pages/ftc06-02.htm or by contacting the Department at (860) 240-8170.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Investment Adviser Assessed $2,250 for
Failure to File Investment Advisory Notice

On June 12, 2002, the Commissioner entered into a Stipulation and Agreement with Sterneck Capital Management, LLC. of 315 Post Road West, Westport, Connecticut. The firm is an investment adviser registered with the Securities and Exchange Commission.

The Stipulation and Agreement alleged that from 1997 until April 24, 2002, when a notice was filed, the firm failed to make the investment advisory notice filing required by Section 36b-6(e) of the Connecticut Uniform Securities Act. Pursuant to the Stipulation and Agreement, Sterneck agreed to pay $2,250 in resolution of the matter. Of that amount, $1,500 constituted an administrative fine and $750 represented reimbursement for past due notice filing fees.