СЯОЧИАТИ 2ЗІЯДЯЗІ

COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

ALFONSE M. D'AMATO, New York, Chairman

PHIL GRAMM, Texas
RICHARD C. SHELBY, Alabama
CHRISTOPHER S. BOND, Missouri
CONNIE MACK, Florida

LAUCH FAIRCLOTH, North Carolina
ROBERT F. BENNETT, Utah
ROD GRAMS, Minnesota
SHEILA FRAHM, Kansas

PAUL S. SARBANES, Maryland
CHRISTOPHER J. DODD, Connecticut
JOHN F. KERRY, Massachusetts
RICHARD H. BRYAN, Nevada
BARBARA BOXER, California
CAROL MOSELEY-BRAUN, Illinois
PATTY MURRAY, Washington

HOWARD A. MENELL, Staff Director
ROBERT J. GIUFFRA, JR., Chief Counsel
PHILIP E. BECHTEL, Deputy Staff Director
JOSEPH MONDELLO, JR., Counsel
PEGGY KUHN, Financial Economist

STEVEN B. HARRIS, Democratic Staff Director and Chief Counsel
SARAH BLOOM RASKIN, Democratic Counsel

GEORGE E. WHITTLE, Editor

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CONTENTS

WEDNESDAY, JULY 17, 1996

Page

Opening statement of Chairman D'Amato

Opening statements, comments, or prepared statements of:

Senator Bond

1

3

Albert M. Pennybacker, Reverend, Associate General Secretary, National

Council of Churches of Christ in the U.S.A.

Donald C. Bell, Major, Assistant National Community Relations & Develop-

ment Director, The Salvation Army, National Headquarters

Prepared statement.....

Richard L. Furr, Executive Vice President & Chief Operating Officer, Central

Carolina Bank & Trust Company, Durham, North Carolina

Prepared statement

Lien Draft-Comptroller Warrant No. 2128

Certified Bankers Check-Comptroller Warrant No. 2123

Michael C. Stenger, Special Agent in Charge-Financial Crimes Division,

U.S. Secret Service

Prepared statement

Charles L. Owens, Section Chief, Criminal Investigative Division, Federal

Bureau of Investigation

Prepared statement

Financial Institution Fraud Federal Statutes

William R. McLucas, Director, Division of Enforcement, U.S. Securities and

Exchange Commission

Prepared statement

I. "Prime Bank" Schemes

II. The Commission Has Been Aggressive in Combating "Prime

Bank" Fraud

III. The Commission Benefits from Cooperation with other Agencies .

IV. Conclusion

Prime Bank Securities Fraud

Herbert A. Biern, Deputy Associate Director, Division of Banking Supervision

and Regulation, Board of Governors of the Federal Reserve System

Prepared statement

"Prime Bank" Schemes and Advisories

The Effect of "Prime Bank" Schemes

Legislation

Federal Reserve Press Release

Interagency Advisory, October 21, 1993

138

Federal Reserve Press Release

Appendix A

"Reckless Principal," June 11, 1996

141

143

Appendix B

144

George M. Donahue, Assistant District Attorney, New York County District

Attorney's Office

17

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