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FORMER CHAIRMAN OF TEXAS THRIFT CONSENTS TO PROHIBITION, RESTITUTION

 WASHINGTON, May 27 /PRNewswire/ -- The former chairman of a failed Texas thrift has been prohibited from the banking industry by the Office of Thrift Supervision (OTS) and agreed to an obligation to pay restitution of more than $139,000.
 Without admitting or denying guilt, John H. Stowe, former chairman and controlling stockholder of failed Davy Crockett Federal Savings Bank, Crockett, Texas, consented to orders that will ban him from working for any federally insured depository institution.
 OTS charged Stowe with violation of regulations, breach of fiduciary duty and participation in unsafe or unsound practices. The agency said Stowe used Davy Crockett funds to pay $14,484 in attorney fees Stowe incurred in getting financing from a commercial bank to purchase Davy Crockett stock.
 Stowe 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 Stowe to pay for his personal Davy Crockett stock.
 Stowe also authorized and approved, without his official board's authorization, the origination of 17 unsecured loans totaling $267,496 to 17 advisory directors. The loans violated Davy Crockett's lending policies against unsecured loans, and caused losses of at least $90,000.
 OTS said Stowe violated a supervisory agreement with OTS by authorizing and approving 18 loans to officers and directors as well as concealing the agreement from other officials at the institution.
 The agreement with Stowe ends successful enforcement action against 37 officers, directors and affiliated directors -- the largest number of affiliated persons ever involved with a single thrift. The others previously signed consent orders for varying remedies including prohibition and restitution totaling $57,830.
 Davy Crockett Federal Savings Bank, with assets of $50.5 million, was placed in receivership under the Resolution Trust Corporation on Sept. 13, 1991.
 -0- 5/27/93
 /CONTACT: Thomas P. Mason of the Office of Thrift Supervision, 202-906-6688/


CO: Office of Thrift Supervision; Davy Crockett Federal Savings Bank ST: District of Columbia, Texas IN: FIN SU:

IH-DC -- DC033 -- 3141 05/27/93 17:03 EDT
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Publication:PR Newswire
Date:May 27, 1993
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