The Department of Banking News Bulletin

Bulletin # 2118
Week Ending September 24, 2004

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 Financial Institutions Division, (860) 240-8180.

On September 24, 2004, pursuant to pursuant to Section 36a-412(a)(2) of the Connecticut General Statutes, as amended by Public Acts 03-196 and 04-136, and Section 36a 145(c)(1) of the Connecticut General Statutes, as amended by Public Act 03-196, the Commissioner granted approval to Imperial Capital Bank to establish a de novo limited branch to operate under the name Imperial Capital Express, a division of Imperial Capital Bank - Stamford Office, at One Stamford Plaza, 263 Tresser Boulevard, 9th Floor, Stamford, Connecticut, to engage solely in loan production.

ACQUISITION

On September 23, 2004, pursuant to Section 36a-185 of the Connecticut General Statutes, as amended by Public Act 03-259, the Commissioner issued a notice of intent not to disapprove the direct and indirect acquisition by Naugatuck Valley Mutual Holding Company and Naugatuck Valley Financial Corporation of all of the voting securities of Naugatuck Valley Savings and Loan, a federal mutual savings bank.

CREDIT UNION ACTIVITY 
Field of Membership

On September 21, 2004, pursuant to Section 36a-462b(d) of the Connecticut General Statutes, the Commissioner granted approval to Corporate America Family Credit Union to expand its field of membership to include employees of Eastern Plastics, Inc., Bristol, Connecticut.

SECURITIES AND BUSINESS INVESTMENTS DIVISION
New York Man Fined $1,500 for Transacting Business
as Unregistered Broker-dealer Agent

On September 22, 2004, the Commissioner entered into a Stipulation and Agreement with Ludwell E. Gaines III of New York, New York. Prior to his association with Legend Securities, Inc., Ludwell E. Gaines III had been associated with Kevin Dann & Partners, LLC, a broker-dealer registered under the Connecticut Uniform Securities Act. The Stipulation and Agreement alleged that from approximately January 2003 to January 2004, Ludwell E. Gaines III transacted business as an agent of Kevin Dann & Partners, LLC while not registered as an agent of the firm under the Act. Pursuant to the Stipulation and Agreement, Ludwell E. Gaines III agreed to pay a $1,500 fine to the department.

Arkansas Firm Fined $3,500 for Unregistered
Broker-dealer and Agent Activity

On September 22, 2004, the Commissioner entered into a Stipulation and Agreement with St. Bernard Financial Services, Inc., an applicant for broker-dealer registration located at 220 West Main Street, Suite 200, Russellville, Arkansas. The Stipulation was based on allegations that, from approximately February 2004 until August 2004, the firm transacted business as a broker-dealer absent registration under the Connecticut Uniform Securities Act and employed an unregistered agent. Pursuant to the Stipulation and Agreement, the firm agreed to revise and implement supervisory and compliance procedures designed to prevent and detect any future violations of the Act. In addition, the firm agreed to pay a $3,500 fine to the department. St. Bernard Financial Services, Inc. became registered as a broker-dealer under the Act on September 22, 2004.