Tough Capital Insider to Face His Critics on Bank Regulation - RIGGS

[seemslikeadream]

Linda Spillers for The New York Times
John D. Hawke Jr., the comptroller of the currency, making a point in his office last week. His tenure is to be examined today and tomorrow by Congressional panels.

By TIMOTHY L. O'BRIEN

Published: June 2, 2004


tiny wooden canary in the Washington office of John D. Hawke Jr. serves as a reminder of the proverbial canary in a coal mine, doomed to perish as a warning sign of pending danger.

Mr. Hawke, the comptroller of the currency and one of the country's most powerful regulators, is responsible for gauging the financial well-being of national banks. To make sure that his agency was looking for signs of trouble, he ordered an overhaul of his agency's early-warning systems and called it Project Canary.


But as he approaches the end of his six-year tenure as comptroller, those efforts are under scrutiny. Mr. Hawke and his agency have drawn withering criticism on Capitol Hill for failing to fix longstanding compliance problems at the Riggs National Corporation. Riggs, a Washington-based banking company that has long been a favorite of diplomats and government officials, is caught up in sprawling federal investigations of suspected money laundering and terrorist financing through its accounts.

Mr. Hawke also tangled with state regulators when he issued guidelines in February saying that his agency has the upper hand in enforcing lending laws. The action put him on a collision course with state officials including the New York attorney general, Eliot Spitzer, who say that the comptroller's guidelines favor banks and weaken consumer protection.

more
http://www.nytimes.com/2004/06/02/business/02hawke.html?ex=1086840000&en=cc813b1ea9972a08&ei=5062&partner=GOOGLE

[Snazzy]

1. Was just working up to my daily Riggs Google

So, he's the good guy. Right.

Seems to me the left hand/right hand confusion was replete. Plus the minor point that they apparently get busted for money laundering, and then, whoas-me, have to sell the bank, gaining some 25% in value so far.

Need to find out where the EG and Saudi money went after Riggs. I also note that there has been little press on the BAC Florida finger shaking, which was clearly deeply related.

I was digging this here:

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=585640#585661

NYT: "Law enforcement officials have not accused the bank of criminal wrongdoing, but a former Riggs executive is the subject of a grand jury investigation."

?

edit: wireless keyboard must be the problem

[Snazzy]

2. WaPo is still on it too

http://www.washingtonpost.com/wp-dyn/articles/A7959-2004Jun1.html

Regulators to Say Monitoring Of Riggs Wasn't Satisfactory

By Kathleen Day
Washington Post Staff Writer
Wednesday, June 2, 2004; Page E01

Comptroller of the Currency John D. Hawke Jr. and another top regulator at the agency will tell Congress they failed to move quickly enough to fix years-long money-laundering violations at Riggs Bank, sources familiar with the testimony said yesterday.

Hawke's plan to say his agency stumbled on the job -- a failure that let regulatory lapses at the bank continue for several years -- comes as House and Senate committees prepare for hearings today and tomorrow on anti-money-laundering efforts.

Two weeks ago, in advance of the hearings and in the wake of sharp criticism of bank regulators by lawmakers at similar hearings last month, Hawke launched an internal top-to-bottom review of his agency's oversight of Riggs, going back to 1997.

"I want your full and frank assessment as to whether our examination team took appropriate and timely actions," Hawke said in a memo ordering the review. "You should also seek to determine whether there were any inappropriate influences that may have affected our supervisory activities in this case."

....

[napi21]

3. YEA!!! Spitzer could come through AGAIN!

Go get 'em Eliot!! Prove the Riggs Bank was funding Terrorism and that there's some link to the Bush Empire and we'll be home free.

[Old and In the Way]

4. There is so much smoke here, I can't see the fire.

Perhaps Kerry can reopen the BCCI investigations as his 1st official act and make Riggs Bank the 1st frderal investigation with the new US AG, Eliot Spitzer, leading the charge. It's time to get serious about the source of terror.

[seemslikeadream]

5. executive secretary at main branch of Riggs Bank dies

sorry for this but it makes a good headline and a shameless kick!


Mrs. Karpman retired in 1985 after working as executive secretary for several years at the main branch of Riggs Bank in Washington. Earlier, she had been an executive secretary at Graham, Van Leer & Elmore, a Washington construction firm, and for Formica, in Silver Spring.

She was born in Brooklyn, N.Y., and moved with her family to Laurel in 1950. After retiring in 1985, she lived in Florida for 13 years before returning to Laurel.

In Laurel, she had been a Girl Scout leader and was a member of the women's auxiliary of the Moose lodge.

Her husband of 28 years, Julius "Jay" Karpman, died in 1966.

Her marriage to Sol Brunner ended in divorce.

Survivors include two children from her first marriage, Donniel B. Karpman and Ethelynne "Ettie" Karpman, both of Laurel; a sister; two grandsons; and five great-grandchildren.
http://www.washingtonpost.com/wp-dyn/articles/A5153-2004May31.html

[mulethree]

6. kick