Fed Plans Sale of BCCI Stake in 1st American
The Federal Reserve Board has resumed plans for selling the 60% stake in First American Bankshares Inc. held by Bank of Credit and Commerce International.
Virgil Mattingly Jr., the Fed's general counsel, said in an interview that he expected BCCI's receivers to turn over the company's First American's holdings "soon" to a Fed-approved trustee. The trustee would subsequently sell the shares.
BCCI agreed in March to turn over its First American holdings to a Fed-approved trustee, but the plans were stalled after the company's operations were seized by international regulators last month. However, First American issued last week a press release saying that BCCI's conservators and the company's principal shareholder have agreed to comply with BCCI's agreement with the Fed.
The conservators "will have to comply with the board's order," Mr. Mattingly said.
Mr. Mattingly declined to elaborate on how the sale of BCCI's stake might be handled or comment on whether any talks with potential bidders already have been held. A Fed official said any proceeds from the sale of the First American shares will likely be put in into a trust pending a decision on how to dispose of the money. [Tabular Data Omitted]