Riggs (Bank) Seeks Buyer After Government Fine, Executive Departures

[UpInArms]

http://quote.bloomberg.com/apps/news?pid=10000103&sid=a1mowiaKgTZk&refer=news_index

May 28 (Bloomberg) -- Riggs National Corp. in the past month has paid a $25 million government fine, lost three executives and been labeled a ``troubled'' bank by regulators.

Now Washington, D.C.-based Riggs, with customers including the Saudi Arabian embassy, is for sale, people familiar with the matter said late yesterday.

Riggs, with a market value of $543 million, hired Lehman Brothers Holdings Inc. to help sell the company, the people said on the condition they not be named. The bank, accused by regulators of failing to enforce anti- money laundering rules, is contacting potential buyers such as Citigroup Inc. and Wachovia Corp., the people said.

A buyer would get a bank with 28 branches in Washington, 13 in Virginia and nine in Maryland, as well as offices in London, Berlin and Nassau in the Bahamas.

<snip>

Federal investigators concluded that Riggs failed to report suspicious transactions to banking authorities, the U.S. Office of the Comptroller of the Currency said earlier in the month. Riggs neither admitted nor denied wrongdoing.

...more...

http://www.riggsbank.com/Discover_Riggs/may31_00.html

Dudley Elected Chairman of Riggs Investment Management Subsidiary; Bush to Serve as President & CEO

Washington, D.C., May 31, 2000 - Riggs Bank N.A. today announced that the Board of Directors of RIMCO, a wholly owned investment management subsidiary, has elected Jonathan J. Bush President & Chief Executive Officer and a Director, replacing Philip Tasho who resigned. In addition, Henry A. Dudley, Jr. was elected Chairman.

Mr. Bush will continue as Chairman and Chief Executive Officer of J. Bush & Co., an investment management company he founded in 1970, which Riggs acquired in 1997. Mr. Dudley, a 24-year veteran of Riggs, will continue to be responsible for all of Riggs Bank's investment management, trust and private banking business.

Located in the nation's capital, Riggs Bank has 53 branches in the Washington, DC metropolitan area, as well as banking offices in Miami, London and Berlin.

http://www.washingtonpost.com/wp-dyn/articles/A58805-2004May26.html

A Shift in Strategy for Riggs

excerpt:

And, though Jonathan Bush briefly ran Riggs's investment advisory business during a management shakeup at the division in 2000, for the most part he has run his company as a distinct, wholly owned subsidiary of the bank, responsible for generating his own business and having limited interactions with select Riggs clients, Hendrix said.

"Jonathan Bush is very active, a very active manager," Hendrix said. He would not comment on details of Bush's business, but sources familiar with the company say J. Bush & Co. employs eight people and has about $200 million in assets under management. When Riggs acquired the company it had approximately $250 million under management. Riggs manages client assets of more than $6 billion, including trust accounts.

Jonathan Bush declined to comment.

[Joanne98]

1. But, but, but what about the UN oil for food scandal?

(sarcasm) :)