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September 12, 2024

CT-based bank settles enforcement action with CT Dept. of Banking

Wikimedia Commons The Federal Reserve Bank of New York
By Andrew Larson

Greenwich-based Fieldpoint Private Bank & Trust, a private bank co-founded by a group of Wall Street magnates, has entered into an agreement with financial regulators in two states following enforcement action.

The Federal Reserve Bank of New York and the Connecticut Department of Banking, which supervises the bank and its parent company, Fieldpoint Private Holdings, found "certain deficiencies" during reviews in 2023.

Those deficiencies weren't disclosed.

As part of the agreement, the bank and its parent company agreed to make numerous changes and to submit progress reports to their supervisors within 45 days at the end of each quarter.

Under the agreement, Fieldpoint is required to submit an “enhanced liquidity risk management program” that includes plans to diversify sources of funding, enhanced liquidity stress test scenarios and a periodic independent review of the bank’s liquidity risk management process. 

Also, it must submit a revised written contingency funding plan that includes adverse scenario planning.

Further, Fieldpoint will submit a written strategic business plan and a budget for the
remainder of 2024 that improves the bank’s earnings and overall condition.

The bank and its parent company also must submit a plan to maintain sufficient capital on a consolidated basis.

In addition, Fieldpoint agreed not to, directly or indirectly, declare or pay dividends, engage in share repurchases or make any other capital distribution without the approval of its supervisors.

Fieldpoint also agreed not to, directly or indirectly, incur, increase, prepay or guarantee any debt without the approval of its supervisors. 

The bank waived its right to dispute the regulators' findings, but issued the following statement in a press release:

"Over the last eighteen months, the banking industry has faced challenges related to the volatile interest rate environment that led to high-profile bank collapses and dissolution into new ownership. Through that time, Fieldpoint Private Bank & Trust is one of many banks working with its federal regulator, in our case the Federal Reserve Bank of New York, on actions ensuring the continued financial strength that our stakeholders know and expect. These practices - which are now formalized in a written agreement by and among Fieldpoint Private, Fieldpoint Private Holdings, Inc., the Federal Reserve Bank of New York, and the Connecticut Department of Banking -- have been in action for some time and are focused on strengthening the financial discipline which maintains our liquidity and capital. Fieldpoint Private is well positioned for future growth and will continue to maintain our focus on what is right for the client, period."

Fieldpoint was founded in 2008 by former Merrill Lynch executives David Komansky, John "Launny" Steffens and Daniel Tully, as well as former UBS PaineWebber CEO Joe Grano, Invemed Associates' Kenneth Langone, who co-founded Home Depot, and KKR co-founder Jerome Kohlberg.

Fieldpoint Private Bank & Trust has $1.4 billion in assets and caters to registered investment advisers and high-net-worth individuals, families, entrepreneurs, businesses and institutions.
 

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