Colo. Bank Ordered To Fight Laundering
WASHINGTON - The Office of the Comptroller of the Currency has ordered a Colorado bank to tighten its anti-money-laundering controls.In a pact made public last week, $64 million-asset First National Bank of Telluride agreed to develop a system of internal controls that would improve its compliance with the Bank Secrecy Act. The agreement called for tougher procedures for screening new customers, closer monitoring of accounts for suspect transactions, and enforcement of rules prohibiting transactions with out-of-favor foreign governments.
The three-branch bank also agreed to hire a compliance officer acceptable to the OCC, to improve its internal audit procedures, to develop a program for complying with consumer protection laws, and to curtail all illegal or improper acts cited in the bank's Sept. 14 examination report. The agreement was signed Oct. 26 by six of First National's directors.
The document released by the OCC did not say whether the bank had, knowingly or otherwise, laundered any criminal funds. Thomas H. Kenning, the bank's president, declined to comment.
- Scott Barancik
4Q Earnings Estimate Slashed for Calif. Bank
An analyst has cut his estimate of fourth-quarter earnings at Bay View Capital Corp. because the San Mateo, Calif., company is unlikely to complete a planned loan securitization this year.Eric Reim of Minneapolis-based U.S. Bancorp Piper Jaffray reduced his fourth-quarter estimate last week from 43 cents per share to 31. He cited management's decision to postpone the securitization, possibly until the first quarter.
A franchise loan securitization involves a type of loan made specifically to franchises.
Last month, $5.6 billion-asset Bay View bought Franchise Mortgage Acceptance Corp. of Los Angeles, a company specializing in lending to franchise businesses such as gas stations and fast-food chains.
Scott Ray, chief financial officer of the subsidiary Bay View Bank, would not comment on why it may delay the securitization. He said there is a slight chance Bay View could put them into play before Dec. 31.
- Taran Provost