An African-American bank in St. Louis that has been instrumental in leading loan syndications for other minority-owned banks has run afoul of federal regulators.
Gateway National Bank, with $34 million of assets, has been ordered by the Office of the Comptroller of the Currency to address unspecified violations of laws and regulations and to hire an independent consultant to monitor its progress. Gateway consented to the order in March, according to the OCC, which made the order public this month.
Meanwhile, the bank's chairman and chief executive officer have both resigned, according to the St. Louis Business Journal. Neither chairman Clifton Gates nor CEO Donnell Reid was available to comment, but reports said they have been succeeded by Brian McNamara, a former OCC examiner who is leading a group that is buying Gateway.
The bank made a name for itself by teaming up with other minority-owned banks to supply lines of credit to large corporations. This year it led 26 banks in extending a $40.6 million line of credit to Kmart Corp.