SILVERADO BANKING, SAVINGS AND LOAN ASSOCIATION HEARINGS BEFORE THE COMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS HOUSE OF REPRESENTATIVES SECOND SESSION PART 1 MAY 22 and 23, 1990 Printed for the use of the Committee on Banking, Finance and Urban Affairs Serial No. 101-124 US GOVERNMENT PRINTING OFFICE WASKIMOTON : 1999 For sale by the Superintendent of Ducuments. Congressional Sales Office 2664 TUESDAY, MAY 22, 1990 Creager. Robert E.. partner, Coopers & Lybrand Hershkowitz Stephen P., deputy director of Enforcement, Office of Thrift McCormally, Brian C., district counsel, Office of Thrift Supervision. Topeka.... Sandefur. Terry, assistant deputy district director, Supervision, Office of Van Cleave, Dorothy, assistant deputy district director, Examinations, Office Weinstein, Harris, chief counsel. Office of Thrift Supervision Wullschleger, Herb, partner, Ernst & Young.. ADDITIONAL Material SubmitteD FOR THE RECORD Anonymous letter dated October 25, 1988, to M. Danny Wall and Kermit 531 Office of Thrift Supervision: Background information for Silverado bearings provided by minority staff. 187 202 Index of Key Supervisory Actions. Silverado Banking, Savings and Loan Association: Holding Company Loan charts. Loan Pool chart Overview Quad Pro Que Program charts. Supervisory Chronology Silverado Hypergrowth chart. News Releases dated January 10, 11, 19, 23 and 25, 1990. Joint statement of Stephen P. Hershkowitz, Brian C. McCormally, Terry 274 192 Examination History from January 1980 to December 1988. 172 164 173 168 158 166 175 162 Silverado Banking. Savings and Loan Association-Continued Silverado Self-Funding Capital Transactions Information provided by OTS on Silverado's transactions with Bill L. Walters Memorandum dated January 18. 1990, from OTS enforcement and the Topeka District Office to the ERC regarding recommendation for action in respect of Neil M. Bush Memorandum dated February 17, 1988. from Jack Grace and Dennis Lacey, Coopers & Lybrand, to office files, regarding a meeting with Silverado management... Questions for Mr. Paul submitted by Hon. Bunning Supplemental submission, charts prepared by Office of Thrift Supervision. WITNESSES WEDNESDAY, MAY 23, 1990 Bunchman, Richard J., former director, Silverado Banking Bush, Neil M., former director. Silverado Banking... Prepared statements: Annunzio, Hon. Frank... APPENDIX ADDITIONAL Material SUBMITTED FOR THE RECORD Correspondence with witnesses. 202 Excerpt from GAO Report on Thrift Failures: Officers and Directors Breached 622 Internal memorandum dated February 23, 1987, regarding significant loans declined by Silverado banking, submitted by Hon. Parris. 569 Letter dated November 5, 1986, from Neil M. Bush to Michael Wise regarding a $900,000 line of credit for Good International 629 Office of Thrift Supervision Manual: Director Information Guidelines. 571 Subpoena resolution 550 Wise, Michael, memorandum and letter dated July 15, 1985 regarding Neil M. 567 WASHINGTON, D.C., Jan. 10 -- Tve former officers and directors if Silverado Banking, Savings and Loan Association, Denver, Colo., beve agreed to OTS consent orders, without admitting any wrongdoing, that prohibit them from working for federally insured financial institutions without prior approval of the appropriate regulatory agency. The office of Thrift Supervision reached the settlement vita Richard E. Vandapoel, former board vice chairman and chief operating officer of silverade, and Robert A. Lewis, former board vice chairs and chief financial officer. The thrift was placed into receivereni, in December 1988. While an OTS investigation was still under vey. Lewis and Vandapool consented to the issuance of the order without admitting any wrongdoing. federal examiners had expressed grave concerns over the sound.com of Silverado's management in the months before its closing, OTS HIE 2. 3. Docket Number: 02745 If activity occurred at branch office(s), identify: Asset Size of Financial Institution: $8,961,146,000 (as reported on the September 30, 1989 Thrift Financial Report). Approximate date and dollar amount (prior to any allowances for restitution or recovery) of suspected violation Date: July 27, 1988 Amount: $25,000,000 (Month) (Day) (Year) 4. Summary characterization of the suspected violation. Mark appropriate 6. [ ] Yes [X] No If so, by whom? None Explanation/Description of Suspected Violation (Give a brief summary of the suspected violation, explaining what is unusual or irregular about the transaction.) |