Independence Federal Savings Bank of Washington has terminated a shareholders rights plan that had effectively blocked its largest stockholder, Morton Bender, from acquiring more shares.
The step was announced Wednesday. The board had approved the plan, which was to have remained in force 10 years, on May 5. The termination could open the door for Mr. Bender to acquire even more stock at some point.
Mr. Bender, the primary owner of the $109 million-asset Colombo Bank in Rockville, Md., owns 21% of Independence's shares and has made no secret of wanting to buy the Washington thrift outright.
He cannot do so, however, until the Office of Thrift Supervision lifts an order prohibiting him or Colombo Bank from acquiring additional shares. The prohibition was issued after Colombo received a cease-and-desist order from regulators for Bank Secrecy Act violations, but Mr. Bender said in a recent interview that he expects the ban, directed at him, to be lifted soon.
