FEDERAL DEPOSIT INSURANCE CORPORATION
IN RE: Guardian Trust Company, FSB (In
Organization) New York, New York
Application for Federal Deposit Insurance (Savings Association Insurance Fund)
ORDER
The undersigned, acting under delegated authority, has fully considered all facts and
information relevant to the factors of Section 6 of the Federal Deposit Insurance Act
relating to the application for Federal deposit insurance for Guardian Trust Company, FSB,
a proposed new limited-purpose Federal savings bank to be located at 7 Hanover Square, New
York, New York, and has concluded that the application should be approved.
Accordingly, it is hereby ORDERED, for the reasons set forth in the attached Statement,
that the application submitted by Guardian Trust Company, FSB for Federal deposit
insurance be, and the same hereby is, approved subject to the following conditions:
1. That beginning paid-in-capital funds of not less that $5,000,000 be provided, of
which not less than $2,000,000 shall be allocated to common stock and
$3 ,000,000 to surplus;
2. That any changes in proposed management or proposed ownership (10 percent or more of
stock), including new acquisitions of or subscriptions to 10 percent or more of stock,
will render this commitment null and void unless such proposal is approved by the Regional
Director of the FDIC's New York Regional Office ("Regional Director") prior to
opening of the bank;
3. That Federal deposit insurance shall not become effective unless and until the
applicant has been established as a Federal savings bank, that it has authority to conduct
a banking business, and that its establishment and operation as a bank have been fully
approved by appropriate Federal authorities;
4. That The Guardian Life Insurance Company of America, a financial services holding
company, obtain approval from the Office of Thrift Supervision to acquire voting stock
control of the bank prior to its opening;
5. That the insured institution shall be engaged in the business of receiving deposits,
other than trust funds;
6. That if deposit insurance has not become effective within twelve months from the
date of the ORDER, or unless, in the meantime a request for an extension of time has been
approved by the FDIC, the consent granted shall expire at the end of the said twelve-month
period; and
7. That until the date that this conditional commitment for deposit insurance becomes
effective, the FDIC shall have the right to alter, suspend, or withdraw the said
commitment should any interim development be deemed to warrant such action.
Dated at Washington, D.C., this 20th day of April,
1999.
James L. Sexton
Director
Division of Supervision
FEDERAL DEPOSIT INSURANCE CORPORATION
IN RE: Guardian Trust Company, FSB New York, New York
Application for Federal Deposit Insurance (Savings Association Insurance Fund)
STATEMENT
Pursuant to the provisions of Section 5 of the Federal Deposit Insurance Act (12 U.S.C.
1815), an application for Federal deposit insurance with membership in the Savings
Association Insurance Fund has been filed on behalf of Guardian Trust Company, FSB
(Guardian FSB), a proposed new Federal savings bank to be located at 7 Hanover Square, New
York, New York.
Guardian FSB's sole shareholder will be The Guardian Life Insurance Company of America.
Guardian FSB's focus will be solely on trust services. By virtue of having a Federal
savings bank charter, Guardian FSB will be able to exercise trust powers in all 50 states
and the District of Columbia.
For the purposes of this proposal, the investment in fixed assets is reasonable,
capital is adequate, future earnings prospects are favorable, and management is considered
satisfactory. No formal objections to this application have been filed with the FDIC.
Corporate powers to be exercised are consistent with the purpose of the Federal Deposit
Insurance Act. No undue risk to the Savings Association Insurance Fund is apparent.
Accordingly, based upon a careful evaluation of all available facts and information,
the Director, pursuant to delegated authority. has concluded that approval of the
application is warranted.
DIRECTOR
DIVISION OF SUPERVISION
FEDERAL DEPOSIT INSURANCE CORPORATION
