News Column

Hayes banned from banking by FDIC

January 31, 2014

By Lisa Brown, St. Louis Post-Dispatch

Jan. 31 -- Shaun Hayes , a once prominent banker in St. Louis , has been banned from banking by the Federal Deposit Insurance Corp. The FDIC issued a "prohibition from further participation order" against Hayes, based on his prior leadership role at Excel Bank , which failed in 2012. The order was dated Dec. 30 , but wasn't released by the FDIC until Friday. The Excel failure cost the Deposit Insurance Fund nearly $43 million . According to the FDIC , Hayes, Excel's former president, "engaged or participated in violations of law or regulation, unsafe or unsound practices, and/or breaches of fiduciary duty as an institution-affiliated party" of Excel Bank , which was headquartered in Sedalia and had a branch in Kirkwood and a mortgage office in Clayton . Arkansas -based Simmons First National Corp. purchased Excel's assets after it failed and took on its deposits. The FDIC prohibits Hayes from serving as a bank director, officer or "person participating in the conduct of the affairs or as an institution-affiliated party" of a bank. Hayes' conduct while overseeing the bank "involved personal dishonesty" and the willful "disregard for the safety or soundness of the bank," the FDIC said. Hayes consented to the order without admitting or denying the allegations. He could not be reached for comment about the order. Separately, former Excel executive vice president Timothy Murphy also was banned from banking by the FDIC tied to his leadership at Excel. Murphy also not be reached for comment. Excel's failure was one of several troubled banks Hayes was associated with in recent years. He was an executive or consultant at three Missouri banks that failed since 2011: Sun Security, Truman Bank and Excel Bank . Hayes also was previously president and CEO of National City Bank's Missouri operations. ___ (c)2014 the St. Louis Post-Dispatch Visit the St. Louis Post-Dispatch at www.stltoday.com Distributed by MCT Information Services


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Source: St. Louis Post-Dispatch (MO)


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