FDIC Banishes Former Bank President From the Industry
Federal regulators have barred a former president of the Bank of Westminster from the banking industry for life because they believe he caused losses at the bank through unsafe practices and violations of banking rules.
The Federal Deposit Insurance Corp. said in an order made public Monday that it had reason to believe that A. Paul Tomko’s actions breached his fiduciary duties and involved “personal dishonesty” that harmed the safe and sound condition of the bank.
It did not explain its allegations further.
Tomko, who left the bank after a heart attack a year ago, consented to the prohibition under an agreement with regulators in which he neither admitted nor denied the allegations.
Tomko could not be reached for comment.
Don Solsby, president of the bank since April, said regulators have not determined that any specific financial loss at the two-branch institution resulted from the alleged actions.
The bank earned $201,000 in the first nine months of 1992 but ended up losing $516,000 for the year. For the first six months this year, the bank reported net income of $37,000. At the end of June, it had $50 million in assets, down from $58.2 million a year earlier.
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