| OCR Text |
Show Hu'-iiu- Portrait '' Thr Salt l.dkr tribune, ''undav 13 19, I'Mb January Financial Institutions Deputy Chief Brings Law, Philosophy Background to Job With trim beard and c coiffure, George Sutton has the countenance of a 15th century Florentine Those Florentines of the Kenais-sancwere as celebrated for their practice of banking as they were for their patronage of the arts But in the past 50 years of concise and precise regulation, American bankers got pretty much used to operating "by the book," says Mr. Sutton, deputy commissioner of the Utah Department of Financial Institutions. Scarcely creative. "Anyone could make money in the business. But with the insinuations of others into the sacred preserves of banking followed by the dismantling of regulatory barriers, bankers and savings and loan executives have had to learn fast to keep up with a barrage of competitive services offered by such as the securities and insurance industries, he says, s Mr. Suttons entry into regulation came not out of experience in banking and finance but in philosophy and the law. He is a 1977 law graduate of the University of Utah and left private practice to join the Financial Institutions Department in March 1983. That was just a year after the Murray First Thrift and Loan closing had given the Utah financial community the worst shaking it had since the Depression, and three years after the Grove Financial fiasco, which had revealed serious flaws in Utah's antique financial institutions code. Murray First Thrift customers were not able to reach their deposits for six months until the institution had been acquired by First Security as First Security Corp. and Financial. The law was modernized in 1983, giving the commissioner of financial institutions a much more ready hand to take remedial steps. Subsequent laws, and measures pending, have or will consider enlarging the opportunities for strong financial institutions to come to the reset of any troubled Utah institution. Since the law was changed there have been closing and acquisitions The Golden Spike State Bank of acquired by an Idaho group; e financial-institution- sures savings and loan deposits, the sweetener may be cash and a choice among the assets of the acquired for the acquirer In the case of the Federal Deposit Insurance Corp, which insures bank deposits the offer is cash with the provision the acquirer is to take assets of the FDICs choosing State Savings and Loan, w hose deposits were acquired by Sandia Savings and Loan of Albuquerque, and Citizens Bank o Ogden, closed and ac- quired Bank by Commercial Security But all were done with dispatch Closing by the Department of Fi- nancial Institutions and depository insurance agencies occurred at the end of work-daon a Friday and were followed by the reopening Monday morning under a new owner. In no case did a depositor lose or lack access to his money. And for each of these cliffhangers, there have been unheralded and quietly orchestrated mergers and marriages of financially strong and financially impaired institutions. And in terms of finding the appropriate entities, Elaine Weis, commissioner of financial institutions, has been a brilliant matchmaker, says In such asexchanges, the sumes full responsibility acquirer for the deposits of the acquired institution Institutions may be sold to another, and continue to operate under their own name The depository insurer pays cash to the acquiring institution for its rescue, as the less costly alternative to liquidation. y In Utah, it has not been economic conditions that have brought institutions to the brink of failure as in the agriculturally depressed areas of fldwest and in the energy-de-area- s of the South, he says essentially has a good econo- - Mr. Sutton. But if there are to be any more of these uh, marriages you can be sure there will be no posting of the banns by the Utah Depai tment of Fi- lain cause of financial institu-rluin Utah has been misfea-ranmalfeasance, conditions Uv thrive in the essentially trusting Utah environment. Even when there are rumors of financial disrepair, Utah customers tend to maintain their deposits in the suspect institutions, he says. By contrast, in Hawaii, a rumor sent depositors skittering to a savings and loan to withdraw nearly $50 million within three days. Mr Sutton was born Sept. 7. 1947, to Robert and Bernice Sutton, in Salt Lake City. A philosophy undergraduate at the University of Utah at the height of the Vietnam War, he enlisted in the Army an action triggered, he says, by receiving his draft notice. A draftee suffered the unpleasant prospect of ending up in the infantry in Vietnam fighting a war Mr. Sutton did not agree with. He chose meteorological training. The worst thing that could happen was to be sent to Panama" Duty consisted of stateside tours where he learned to do wind readings for artillery fire. Discharged in 1971, he went to work as a camera salesman. "Philos d nancial Institutions. Simply put, any publicity mmht creae a run on the impaired institution that is, a mass withdrawal of deposits by frightened customers. "In your eyes, it will look like a regular acquisition, he told a recent media conference. Financial institutions do not fail overnight, he said. Early on, there are warning signals that state examiners can pick up. Owners and managers are first advised of the problem and told to take remedial action. If owners are intractable, or the institution appears to have unsolvable financial problems, the department quietly begins to look for acquirers. If there are no willing partners and no alternative solutions, the liquidators are called in and the institution is closed. However, prospective merger partners will have been previously invited to take over the stricken institution with what amounts to a cash subsidy from whichever depository insurer is involved. In the case of the Federal Savings and Loan Insurance Corp., which in George Sutton, deputy commissioner for Utah Department of Financial Institu- - tions, works out of publics eye to spot ear-thly warning signs of trouble, correct them. e ophy was fun, but you cannot live on it Still lacking a degree, he considered law. "It made sense. It involved reason and logic, but not calculus. He took the Law School Admissions Test and promptly was accepted at the U. of U.s College of Law. Bv 1977, he had earned his juris doctor, and began a general civil practice. In 1974, he married U. coed Suzan Pixton, now an attorney with the Utah Industrial Commission. The couple has a son, Sam, MICROSOFT. FLIGHT SIMULATOR FOR IBM. PCs PUTS YOU IN THR PILOTS SEAT 3. Experience accurate Mr. Sutton enjoys photography and hiking in Southern Utah. I read a ton of magazines. real-tim- e simulation of flight in up to 110 flight modes. See panoramic window views Currently, he is reading The Arms of Krupp. "The French had the best army in the world. The Germans conquered them in the Franco-Prussia- n e War with the Krupp out-th- Make use of enhanced graphics and color for RGB monitors Use mouse or joysticks e long-rang- guns. His musical tastes span Bach to Shostakovich to the Rolling Stones. The latter, he says, "can do no wrong." London, Paris, Rome, Greem Valley has the largest ...Only one tennis center in the world. $10 Refund through January 31,1 986. present the coupon below and get SI 0 in cash when you open a new IRA at Western Savings. Deposit SI. 000 into any of our IRA plans. Or, set up a monthly IRA withdrawal from your checking account for S50 or more. Now - Green Valley - The most beautiful resort in the world or (801 ) 628-04Utah Toll Free or (801) 6284664 Rentals - Utah Toll Free 1515 West Canyon View Drive, St. George, Utah 84770 Condominiums 1 A Green 5 Better Way Ya Save The entire amount you invest is fully deductible from earned income on your federal tax return. And, you earn high money market rates in all of our IRA plans. An IRA assures you a comfortable and secure future because your savings grow tax free until you withdraw the funds at retirement. At Western, your savings are insured to $100,000 by the FSLIC. And. Western charges no fees to set up or maintain your IRA. Valley TtttttT OhSIMEK Open Your IRA Today Don't wait another minute to open your IRA. Call or visit any Western Savings' office and get $10 in your pocket, a tax break, and security for the future. 'T SUFFEK THEWUGH b : tWIKITEK. ; The most intelligent cars ever built. Remember , Saab prices start at $12,591. V Home Office: Z.C.M.I. Center 41 East 100 South 0 Cottonwood Office: 4748 Highland Drive Fashion Place Mall Office: 181 East 6100 South 0 (north of Fashion Place Mall) 350-966- 350-968- upoimi 575 South State Sugarhouse Office: 2262 Highland Drive &vj Salt Lake City (801)355-605- 7 350-967- 0 350-960- 0 |
