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KANSAS BANKER RESIGNS, CONSENTS TO PROHIBITION AND PAYMENT OF $2.7 MILLION LOAN LOSS

 KANSAS BANKER RESIGNS, CONSENTS TO PROHIBITION
 AND PAYMENT OF $2.7 MILLION LOAN LOSS
 WASHINGTON, Sept. 4 /PRNewswire/ -- In a joint settlement with the four federal banking regulatory agencies, Leopold H. Greif, former chairman of five insured financial institutions, including Pioneer Savings and Loan Association, Prairie Village, Kan., and Midland Bank, Kansas City, Mo., has resigned and consented to a prohibition from the banking industry and agreed to pay $2.7 million in loan losses and other payments.
 These actions by the Office of Thrift Supervision (OTS), the board of governors of the Federal Reserve System (FRB), and the Office of the Comptroller of the Currency (OCC) do not adversely impact the financial safety and soundness of the Greif-affiliated financial institutions, whose deposits continue to be insured up to the $100,000 limit. The Federal Deposit Insurance Corporation (FDIC) also joined in the settlement, but did not issue consent orders in the case.
 Without admitting or denying any facts, Greif agreed to the issuance of the orders. The consent cease and desist order requires Greif to pay $2.7 million to three Greif-affiliated banks for losses recognized by the financial institutions on a $6 million loan. He must also repay $150,000 he authorized in bonuses to executives of the thrift, indemnify each of the financial institutions for any judgment or legal fees that may be awarded or incurred in connection with a pending lawsuit on an $8 million hotel loan, and reimburse OTS' $128,000 cost in conducting its formal investigation.
 The consent orders mark the first time the OTS, Federal Reserve and OCC have issued joint cease and desist and prohibition orders. Greif was former chairman and/or director of the following institutions and holding companies:
 -- The Pioneer Savings and Loan Association and Pioneer Financial Corporation, Prairie Village, Kan.;
 -- Midland Bank of Overland Park, N.A. (formerly known as College Boulevard National Bank) and Concord Bancshares, Inc., Overland Park, Kan.;
 -- Midland Bank of Lenexa (formerly Country Hill Bank) and Country Hill Bancshares, Inc., Lenexa, Kan.;
 -- Midland Bank of Kansas (formerly Tower State Bank) and TIC Inc., Mission, Kan.; and
 -- Midland Bank and Midland Bancor, Inc., Kansas City, Mo.
 OTS, OCC and the FRB charged that one of Greif's affiliated banks -- with Greif voting for approval -- made a $6 million loan on an apartment complex under circumstances that the regulators concluded was unsafe and unsound. Three of the Greif-affiliated financial institutions ultimately recognized $2.7 million in losses on this loan. The cease and desist order requires Greif to pay $2.7 million to these institutions.
 The regulators also alleged that Pioneer -- with Greif voting for approval -- made an $8 million loan to finance the acquisition of a hotel under circumstances that violated regulations and was unsafe and unsound. The loan is now the subject of a lawsuit against Pioneer and Greif's affiliated banks. The cease and desist order requires Greif to indemnify these financial institutions for any judgment, award damages and attorney fees that may be incurred as a result of this lawsuit.
 In a matter unrelated to the loan transactions, the regulators charged that Pioneer's directors, including Greif, approved an increase in Pioneer's compensation to its officers in December 1990 when the thrift was failing all three of its capital requirements and had $3 million in net losses for the year. With allocation of the increase left to Greif's sole discretion, he paid one officer a bonus of $100,000 and paid $50,000 to a second. The cease and desist order requires Greif to reimburse $150,000 to Pioneer.
 While Greif may continue to hold the stock of the institutions' holding companies, he may not participate in or attempt to control their affairs.
 -0- 9/4/92
 /CONTACT: Cindy Williams, 913-339-5009, or William Fulwider or Paul Lockwood, 202-906-6913, all of the Office of Thrift Supervision CO: Office of Thrift Supervision; Federal Reserve; Office of the
 Comptroller of the Currency ST: District of Columbia, Kansas, Missouri IN: FIN SU:


IH -- DC017 -- 6958 09/04/92 13:15 EDT
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Date:Sep 4, 1992
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