Massachusetts Division of Banks Public Hearing Held Pursuant to Chapter 194 Testimony 8-30-2012
Transcript of Massachusetts Division of Banks Public Hearing Held Pursuant to Chapter 194 Testimony 8-30-2012
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Sncesw Fislet
9: Limepdex Gsdpe
Ltoo`delg, FI 19471
8:9&:77&2177
Fislet10:5Abnfbirw/oew
Firribjurewwr Gdpdrdno n` Ciomr,
9111 Xirjdohwno Rw/, 91wj @lnns,
Cnrwno, FI 1399:
098&450&9591
gnc/bnffeowrArwiwe/fi/ur
Giweg; Iuhurw 21, 3193
Reow PDI e&fidl
SE; Iuhurw 34, 3193 Qucldb Jeisdoh Jelg Qusruiow wn Bjiqwes 947 n` wje
Ibwr n` 3193, Io Ibw Qsepeowdoh Uooeberrist iog Uolix`ul @nseblnruser
Geis BnffdrrdnoesBnwoet;
D wjiom tnu ihido `ns ldrweodoh wn fe no Iuhurw 34, 3193 gusdoh wje qucldb jeisdoh/ Ir D
ridg, D jipe i bnfqlewe uogesrwiogdoh seliweg wn wje @doiobdil Dogurwsder rmullguhhest
wjiw wnnm qlibe rwiswdoh do wje fdg&9441r wn qsereow iog wje Qno{d rbjefe wjiw dr irrew
cibmeg rebusdwd{iwdno/ Xdwj wjiw ridg, dw dr ft jnqe wjiw rnfe oex qsnwebwdnor xdll ce
qsnpdgeg `ns wje bdwd{eor n` Firribjurewwr iog pdnliwdno n` wjnre qsnwebwdnor xdll jipe
bnoreyueober/ D if onw iw xis xdwj ciomr wjiw jelg wjeds qiqes iog se`ureg wn
qiswdbdqiwe do wje `seo{t wjiw xir wje fnswhihe cibmeg rebusdwder gecible/
Wje Gdpdrdno n` Ciomr npesreer fnswhihe leogesr iog csnmesr, gecw bnllebwnsr ifnoh
nwjesr gndoh curdoerr do wjdr Bnffnoxeilwj/
Wjdr pest Gdpdrdno drrueg io igpdrnst lewwes wn wje ciomr do 9448,dorwsubwdoh wje ciomr
onw wn drrue wje wnzdb lnior wjiw `dll wje rebusdwd{eg qnnlr jnxepes, xdwjnuw qeoilwder d`
wjet gdg/ Wje qsnclef jese dr wjiw wjese ise on bnoreyueober `ns wje Ciomrwesr, iog wjet
nqesiwe xdwj dfquodwt iog xe, wje qenqle, `eel ir wjnuhj xe ldpe do i lixlerr oiwdno/Wjiw wje lixr ise nolt iqqldbicle wn wje ldwwle hut, iog onw wje i``lueow/ Rnfewjdoh dr
wessdclt xsnoh xjeo wje ciomr iog wjeds lixtesr bnffdw `siug epest git seliweg wn
`nseblnruser xdwjnuw seqesburrdnor/
Ibbnsgdohlt, jese xe ise iog tnu jipe wje nqqnswuodwt wn bseiwe resdnur sifd`dbiwdnor
`ns wje `siugrwesr/
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H/L/ b/ 300 25I jir ceeo no wje cnnmr `ns npes wxn teisr iog onw noe n` wje bsdfdoilr
jir ceeo dogdbweg uoges wjiw rwiwuwe/ Xjt eoibw wje lix d` on noe xdll eo`nsbe dw>
Xjeo tnu bseiwe wje oex BFS, wje lirw rebwdnor furw seig,i pdnliwdno n` wjere
qsnpdrdnor dr i pdnliwdno n` F/H/L/ b/ 300 25I/
Wje Gue Qsnberr Bliure n` wje @d`wj Ifeogfeow wn wje Uodweg Rwiwer Bnorwdwuwdno,
bnopeteg wjsnuhj wje @nusweeowj Ifeogfeow wn wje rwiwer, dr sdqe `ns ishufeow/
Xjeseir, wje onwdbe qsnpdrdnor uoges F/H/L/, jir ceeo jelg wn riwdr`t wje gue qsnberr
bliure, jnxepes, uoges wje qsereow rwiwe n` i``idsr, wje qespirdpe, nuwsihenur iog cliwiow
`siug qesqewsiweg ct wje Rbjefesr do @nseblnruse Hiwe, wje onwdbe qsnpdrdnor iog nus
qsnwebwdnor jipe ceeo selehiweg wn oulldwder iog dw dr wdfe wn sepdrdw wje drrue/ Bleislt
epdgeobeg, do nus ono&kugdbdil `nseblnruse rwiwe, on gue qsnberr busseowlt ezdrwr/ Tnu
jipe wje nqqnswuodwt wn csdghe wjiw hiq onx/
Wje `nllnxdoh liohuihe furw ce doblugeg do illonwdber doblugdoh wje onwdbe n`
ge`iulw/ @uswjes, ill Onwdber furw ce rdhoeg ct i seil qesrno, i cseiwjdoh, ldpdoh,
jufio cedoh, io dogdpdguil xjn xdll ce jelg serqnordcle `ns jdr.jes ibwdnor/ Wje
Onwdber furw ce rdhoeg Uoges wje Qidor iog Qeoilwder n` Qeskustiog d` onw
pildglt rdhoeg, wje onwdbe dr ge`ebwdpe iog pndg iog dw furw ce geefeg wje `nseblnrdoh
qiswtr `idluse wn rdho wje onwdber, dr i pdnliwdno n` wje icnpe rwiwuwe/
Qlidolt Rwiweg, E``ebwdpe dffegdiwelt;
9$ Uoges niwj, wje `nseblnrdoh eowdwt furw oife wje nxoes n` wje Onwe iogFnswhihe *wje fnswhihee$/
3$ D` onw wje nxoes fnpdoh wn `nseblnre, i rwiwefeow uoges niwj wjiw wje noe fnpdohwn `nseblnre i fnswhihe uoges wje wesfr n` wje fnswhihe bnowsibw iog wje qnxes
n` rile qsnpdrdnor do wjiw bnowsibw, dr wje iheow `ns wje fnswhihee xdwj qsnn` n` wje
iheobt seliwdnorjdq/
2$I rwiwefeow uoges niwj, xjewjes ns onw wje fnswhihe lnio jir ceeo rebusdwd{eg=d` wje Fnswhihe Lnio xir rebusdwd{eg, wjet furw oife wje Wsurwee iog wje Wsurw
iog dw rjill ce doblugeg do wje onwdbe/ D` dw dr i qsdpiwe Wsurw, wjeo ibberr rjill ce
qsnpdgeg wn wje Wsurw gnbufeowr iog ill gdrwsdcuwdno seqnswr/
7$ D` wje Fnswhihe Lnio xir rebusdwd{eg iog qusqnsweglt sequsbjireg `snf wjewsurw, wjeo i rwiwefeow uoges niwj, illugdoh wn wjiw `ibw/
5$ I rwiwefeow uoges niwj, wjiw wje `nseblnrdoh eowdwt dr do qnrrerrdno n` wje nsdhdoilxew dom Onwe iog Fnswhihe iog ill dowespeodoh nsdhdoil xew dom irrdhofeowr n`
cnwj wje Onwe iog wje Fnswhihe iog wjiw wjet bnowido pildg dognsrefeowr iog
xese ezebuweg do ibbnsgiobe xdwj wje rwiwuwer n` `siug/
0$Iwwibjeg wn wje onwdbe furw ce i beswd`deg bnqt n` wje Onwe, Fnswhihe, iog illirrdhofeowr `snf wje `dsrw irrdhoee wn wje lirw iog epest eowdwt do cewxeeo
qleigdoh uoges niwj wjiw wje bnqder ise bnqder n` wje nsdhdoilr/
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8$ Wje `nllnxdoh liohuihe Furw ce doblugeg do epest Onwdbe= ir wje cnssnxes, tnujipe wje sdhjw wn gefiog pdexdoh n` wje nsdhdoil xew dom gnbufeowr, iog fit
ezifdoe wjnre gnbufeowr nswjxdwj/ D` wje Jnfenxoes celdeper wje gnbufeowr
jipe ceeo wifqeseg xdwj ns ilweseg, wjeo ce`nse i kughe, kurwdbe n` wje qeibe, ns i
onwist, i bnqt n` wje qusqnsweg nsdhdoil gnbufeowr rjill ce fige, wje qiswder
rjill ihsee do xsdwdoh wjiw wjet ise wje nsdhdoil gnbufeowr, wje bnqder rjill ce
beswd`deg, iog wje jnfenxoes rjill reog wje qusqnsweg nsdhdoilr `ns i `nseordb
ezifdoiwdno, qserespdoh wje bjido n` epdgeobe, ct xit n` wje xdwoerr icnpe wn i
gerdhoiweg ezifdoes/
Wjdr fdodfuf seyudsefeow dr onw cusgeornfe ons rjnulg wjdr gdpdrdno eoweswido
iot rubj onwdno ns ishufeow do ldhjw n` wje `ibw wjiw io uolix`ul `nseblnruse jir
gepirwiwdoh e``ebwr no wje jnfenxoes, wjeds `ifdlt iog rnbdewt ir i xjnle= wjese dr
on hseiwes qsnwebwdno uoges nus bnorwdwuwdno wjio nus qsnqeswt sdhjwr/ Fnsenpes, do
ldhjw n` wje qespirdpe `siug qesqewsiweg oiwdnoxdge, wje cnssnxes rjnulg ce eowdwleg
wn on lerr/
D serqebw`ullt rucfdw wjdr lewwes iog rqeim `snf i monxlegheicle fdog xjeo D rit,
wjiw d` wje Gdpdrdno n` Ciomr, ir wje npesrees iog sehuliwns n` ciomr gndoh curdoerr do
wjdr rwiwe, xese onw wn ignqw xjiw D jipe nuwldoeg jese, wjeo dw dr epdgeobe wn wje
bdwd{eor n` wjdr Bnffnoxeilwj, wjiw wje noer hdpeo wje qsdpdlehe wn qsnwebw wje
bdwd{eost `snf wjnre dw npesreer, jipe on rubj doweow, iog wjiw wje Ciomrwesr xdll ce
hdpeo sedho wn bnowdoue xdwj wje siqe iog qdllihe n` wje Firribjurewwr Bdwd{eo
wjsnuhj nuwsdhjw siug/
D gn onw igpnbiwe wjiw wjnre xjn jipe wje lehil sdhjw *iuwjnsdwt$ wn `nseblnre ifnswhihe, uoges wje wesfr n` wje Fnswhihe bnowsibw, rjnulg onw, xjeo ill elre `idlr/
Jnxepes, D if igifiowlt nqqnreg wn wje xsnohgnesr xjn xnulg `nseblnre i
fnswhihe wn bnpes&uq wjeds dodwdil `siug xdwjnuw iot lehil sdhjw wn gn rn/
Wje fnrw ehsehdnur irqebw n` xjiw Xill Rwseew iog wje ciomr jipe gnoe dr wjdr; xjeo
wje bsdfdoilr xeow wn Bnohserr wn ceh nus wiz gnllisr wn ripe wjefrelper `snf wjeds
nxo xsnohgndoh, iog Bnohserr hipe wjef nus fnoet, wje pest qenqle xjn ripeg
wjef `snf beswido bnlliqre, wjet xnulg onx gerwsnt xdwj wje fnoet xe hipe wjef/
Wje Ciomr jipe ceeo hdpeo epest nqqnswuodwt wn fdwdhiwe wje jisf wjet jipe biureg
rnbdewt iog wjet jipe wusoeg epest noe n` wjnre nqqnswuodwder down fnbmesderdoblugdoh ill wje rewwlefeowr wjet jipe eoweseg down npes wje qirw rdz teisr, doblugdoh
fiot do wjdr rwiwe/
Lew ur onw lnre rdhjw n` wje `ibw wjiw wjere bsdfdoilr gerwsnteg wje hlncil ebnonft
iog rew down fnwdno io uoefqlntfeow siwe wjiw qiler do bnfqisdrno wn wjehseiw
geqserrdno/ Fdlldnor n` Ifesdbio Bdwd{eor lnrw wjeds fnoet iog wjeds kncr cebiure
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n` xjiw wje ciomr gdg/ Noe rdohle Qno{d rbjefe, uojesilgeg do wje iooilr n` wje
xnslg, csnuhjw wje xnslg wn dwr moeer iog jig wjiw onw jiqqeoeg, qenqle xnulg rwdll
jipe kncr iog xnulg ce icle wn qit wjeds cdllr/
Wje bdwd{eor n` wjdr bnuowst gdg onw bseiwe wjdr bilifdwt, wje ciomr gdg/ Wjese`nse,
epeo wjnre xjnf jipe fnswhiher wjiw xese onw rebusdwd{eg, furw ce hdpeobnordgesiwdno iog bnfqeoriwdno rdobe wjet ise onw serqnordcle `ns wjeds
qsegdbifeow/ Xjeo D rit Bnfqeoriwdno, D feio ir dw seliwer wn iqqsidril `siug,
xjdbj xir wje biwiltrw wjiw reow epestwjdoh do nus ebnonft down wje rwsiwnrqjese/
Do bilbuliwdoh wje OQP, wje `dsrw rweq furw ce io dffegdiwe segubwdno do qsdobdqil wn
se`lebw xjiw wje fnswhihe rjnulg jipe ceeo cuw onw `ns iqqsidril `siug/ Ure wje
Bire&Rjdlles Seqnsw ir i hudge wn fime i bnssebwdno do wje qsdobdqil segubwdno ce`nse
wje iqqsidril `siug cehio do 944:&44/
D if ipidlicle `ns `uswjes gdrburrdno iog d` wjese ise hndoh wn ce `uswjes gdrburrdnor
xdwj wje ciom seqsereowiwdper cejdog blnreg gnnsr ir xir dogdbiweg iw wje qucldb
jeisdoh, wjeo D serqebw`ullt seyuerw wjiw D ce dopdweg wn qiswdbdqiwe rn wjiw wje qenqle
n` wjdr Bnffnoxeilwj jipe i pndbe cejdog wjiw blnreg gnns/ D xir gdrwusceg wn jeis
wjiw wje ciomesr jig wje eis n` wje Gdpdrdno n` Ciomr qsdns wn wje qucldb jeisdoh
xdwjnuw noe rubj ir ftrel qsereow wn se`uwe wje sjewnsdb n` wje ciom
seqsereowiwdper/
D xir ilrn gdrwusceg wn jeis ill wje gdrburrdno iw wje qucldb jeisdoh ir dw seliweg wn wje
pesd`dbiwdno n` icnssnxesr dobnfe do seliwdno wn i fngd`dbiwdno xjeo do `ibw, on
bnordgesiwdno xir hdpeo wn rubj pesd`dbiwdno xjeo ill wjere wnzdb lnior drrueg/ Wje
jtqnbsdrt dr nuwsihenur= fnrw ciomr gdg onw bise d` wje cnssnxes jig wje icdldwt wn
qit wje eznwdb, wnzdb lnior xjeo wjet drrueg wjef jnxepes, onx xjeo wjet furw hdpe
rnfe wtqe n` selde`, wjet xnulg ure wjdr wibwdb wn geot ridg selde`/
Wje `dsrw pesd`dbiwdno furw ce wjiw n` wje ciomr, rdobe wje nolt noe wjiw bio fime i
lehil, cdogdoh ihseefeow ns rewwlefeow xnulg ce wje Fnswhihee, wje nxoes n` cnwj,
wje Onwe iog Fnswhihe/ Onwjdoh elre rjill ru``dbe/ On wsue bnssebwdno bio wime qlibe
uolerr wje seil qiswder do doweserw ise rdwwdoh iw wje wicle/ Do i rebusdwd{eg fnswhihe
lnio, xjn xnulg wjnre qiswder ce> Wje Doperwns iog wje Fnswhihns xjn jipe ceeo
doweowdnoillt jdggeo `snf eibj nwjes do geil, iog ill elre xese cuw cdw qlitesr iog
dowesfegdisder do wjdr Qno{d rbjefe jurwldoh `ns i `ee/ Onwxdwjrwiogdoh, wje wxn rjilloepes feew/ Wje Rbjefesr jipe onwjdoh doperweg, onwjdoh wn lnre iog on fnoet do
wje geilr/ Do ill rebusdwd{eg lnior, wje Onwer jipe ceeo `siuguleowlt sidreg iog xese
ncwidoeg ct i hifdoh rbjefe/ Uoges Firribjurewwr Lix, i Onwe ncwidoeg do i
hifdoh rbjefe dr pndg/Ree F/H/L/ b/ 928 2/
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Onwer, cdllr, cnogr, fnswhiher ns nwjes rebusdwder ns
bnopetiober wje xjnle ns qisw n` wje bnordgesiwdno n` xjdbj dr
fnoet ns hnngr xno ct hifdoh /ns iot nwjes hife, ns ct
cewwdoh no wje rdger ns jiogr n` qesrnor hifdoh, ns `ns
seqitdoh ns sedfcusrdoh fnoet monxdohlt leow ns igpiobeg
`ns hifdoh ns cewwdoh, cuw onw doblugdoh hifdoh bnogubweg
qusruiow wn bjiqwes 32M, ns leow iog igpiobeg iw wje wdfe iog
qlibe n` rubj hifdoh ns cewwdoh wn i qesrno rn hifdoh ns
cewwdoh, rjill ce pndg ir cewxeeo wje qiswder wjesewn, iog ir wn
ill qesrnor ezbeqw rubj ir jnlg ns blidf uoges wjef do hnng
`idwj iog xdwjnuw onwdbe n` wje dllehildwt n` wje bnordgesiwdno/
*Efqjirdr iggeg$
Mdoglt meeq fe do`nsfeg ir wn xjiw xdll.xdll onw ce qsnfulhiweg uoges wje oex
BFS iog illnx fe `uswjes gdrburrdnor seliweg wn iot qsnqnreg qsnfulhiwdnor/
Wjiom tnu `ns tnus bnordgesiwdno iog tnus iwweowdno wn wjdr fiwwes/
D jipe iwwibjeg jesexdwj ft Fiww Csde` `ns tnus qesuril iog rnfe dordhjw/
Serqebw`ullt rucfdwweg
.r.Sncesw Fislet
^^^^^^^^^^^^^^^^^^^^^^^
Sncesw Fislet