Fed issues notice of intent to prohibit

The Federal Reserve Board has issued a Notice of Intent to Prohibit Jacob H. Goldstein, former president and CEO of NBRS Financial, Rising Sun, Maryland (a former state member bank merged with assistance into Howard Bank, Ellicott City, Maryland). The Notice of Intent alleges that Goldstein, who also served as chief lending officer for the bank, received the benefit of loans to third parties without disclosing to the bank's board that he benefited from those loans, which violated Regulation O, breached his fiduciary responsibilities to the bank, and caused the bank to operate in an unsafe and unsound manner.

The Notice of Intent gives Goldstein 20 days to file an answer and notifies him of his right to an administrative hearing to issue recommendations to the Board of Governors concerning its intent to prohibit Goldstein from further involvement with any financial institution.