HB644 Summary

• Banking Board may direct superintendent to impose civil money penalties up to $1,000 per day (maximum $100,000) on bank officers or other persons who cause substantial financial loss through unsafe and unsound conduct or dishonesty.

• Banking Department may remove and permanently prohibit individuals from participating in Alabama state banks or their holding companies if they caused substantial financial loss, even after leaving employment.

• Removes exemption for bank holding company transactions from prior superintendent approval requirement under the Bank Holding Company Act of 1956, with superintendent having 60 days to approve/deny applications.

• For certain purposes, Banking Board quorum is defined as a majority of members present and entitled to vote, and eliminates requirement that FDIC apply to receivership court for appointment confirmation.

• Permits Alabama bank holding companies to acquire out-of-state banks or holding companies with superintendent approval, subject to deposit control limits and five-year operational requirements.