Appeals of Material Supervisory Determinations: Guidelines
(August 25, 1995)
The Supervision Appeals Review Committee of the Federal
Deposit Insurance Corporation (“FDIC”), on August 24, 1995, considered your
appeal of a material supervisory determination and concluded that the bonus
payments of $35, 000 each made to the bank’s seven non-officer directors
during 1993 and 1994 should be reported as dividends on the Consolidated
Reports of Condition and Income filed with the FDIC. Amended reports should
be filed as appropriate. Analysis of the bonus payments indicates that
despite the form of the payments, the substance of the transactions is the
payment of dividends, and they should be reflected as such for regulatory
determination is considered a final supervisory decision of the Federal
Deposit Insurance Corporation.
By direction of the Supervision Appeals
Review Committee of the Federal Deposit Insurance Corporation.