MR. SERINO Will you swear the witness, please? 10 12 13 14 15 16 17 ROBERT J. MCKEAN, JR. was called as a witness and, having been first duly sworn by the notary public, was examined and testified as follows: EXAMINATION ON BEHALF OF COMPTROLLER OF THE CURRENCY BY MR. SERINO: Mr. McKean, this is an administrative inquiry being conducted by the Office of the Comptroller of the Currency into transactions affecting national banks; transaction occurred relating to a national bank concerning a loan made by the Manufacturers Hanover Trust Company to Mr. Lance in June 18 A Do you have any recollection of that transaction? ` No, I don't have any recollection of the transaction. QI have given you a document, dated May 13, 1975, pret pared by a Mr. Brougham. A In the last paragraph of that letter, it indicates that the entire transaction had been discussed fully with 1 5 10 Woodruff, Jenkins, Balamut, McKean and Magee. You, Mr. McKean, are referred to in that paragraph? Yes Having reviewed that document, do you have any recolt lection of the transaction at this time? Yes. Having reviewed it, it has refreshed my recollection about one specific either telephone conversation or conference that I had with Mr. Woodruff. I am relatively sure there was nobody else if it were a conference, I am pretty sure there was nobody else in the room, just the two of us. It had to do 12 with the following question- no names were mentioned, he indicated that the bank was contemplating a loan to some persons a man of considerable repute and generally well thought of, and He said the problem is that his brother is, I think, on the Board, or head of the Federal Reserve Bank of Atlanta, and does that give you any problem? My response was, no, assuming that your loan to the bank is properly collateralized, that you are using your normal credit evaluations, and that you are lending the way`you would to anybody else, the fact that he is related to that particular. 5 2 5 10 individual does not give me any trouble. That was the sum total of the conversation and the last time I had ever heard about it until I read this memoran dum. Mr. Lance's name was never mentioned and, as a matter of fact, individual contractor's name or his brother's name or the bank in Georgia were never mentioned. Q Did you have any knowledge at that time of any terms of the particular loan? A None, except that it probably would be secured by the stock of the bank, being at least in part by the stock of the bank being purchased but, otherwise, no terms. 12 13 Q Could you, Mr. McKean, check your documents to see 14 if you have any documents concerning this particular transaction 15 and if you have, would you make them available to us? 22 All right. Thank you very much, Mr. McKean. (Whereupon, at 11:00 a.m.,. the taking of the deposi I, Joseph Rogers, the officer before whom the foregoing deposition was taken, do hereby certify that the witness whose testimony appears in the foregoing deposition was duly sworn by me; that the testimony of said witness was taken by me stenographically and thereafter reduced to typewriting under my direction; that said deposition is a true record of the testimony given by said witness; that I am neither counsel for, related to, nor employed by any of the parties to the action in which this deposition was taken; and, further, that I am not a relative or employee of any attorney or counsel employed by the parties hereto, nor financially or otherwise interested in the outcome of the action. Joseph Rogers Notary Public in and for My term expires March 30, 1979. |