WASHINGTON -- The former chairman and controlling stockholder of the failed Davy Crockett Federal Savings Bank, Crockett, Tex., has been barred from the bank and thrift industries by the Office of Thrift Supervision and has agreed to pay restitution of more than $139,000.
The OTS said it charged John H. Stowe, who did not admit or deny guilt, with violation of regulations, breach of fiduciary duty, and participation in unsafe or unsound practices.
The agency also said that Mr. Stowe used Davy Crockett funds to pay $14,484 in attorney fees he incurred in getting financing from a commercial bank to purchase stock in the thrift, which had $50.5 million in assets when taken over by the Resolution Trust Corp. in 1991.
Loan Policy Allegedly Violated
Mr. Stowe allegedly diverted $76,200 of the thrift's money to pay fees to members of an advisory board, who in turn channeled the money back to the chairman to pay for his own Davy Crockett stock.
In addition, the OTS said Mr. Stowe authorized and approved, without board authorization, 17 unsecured loans totaling $267,496 to 17 advisory directors. The loans violated Davy Crockett's policies on unsecured loans and caused losses of at least $90,000.
The OTS said Mr. Stowe violated a supervisory agreement with the regulator by authorizing and approving 18 loans to officers and directors as well as concealing the agreement from other officials at the institution.