Darien Rowayton raises capital
As Connecticut cut red tape for the formation of new banks, one of the newest in Fairfield County sold a large stake just months after coming under federal scrutiny for its capital ratios.
This summer, the Connecticut General Assembly gave the Connecticut Department of Banking the power to approve new banks on an expedited basis, hoping to help investors pool capital rapidly to acquire troubled banks nationally and turn them around.
Earlier this month, New York-based Alcar L.L.C. disclosed plans to spend $15 million to acquire a major stake in Darien Rowayton Bank, founded only in 2006 and building a $4 million headquarters on Darien’s main retail strip.
Last spring, the Federal Deposit Insurance Corp. issued a 25-page cease-and-desist order over what it termed were “unsafe or unsound banking practices,” including being inadequately capitalized, operating without an adequate loan-review program and failing to properly account for charge offs on troubled loans it has made.
Darien Rowayton Bank agreed to the order without admitting that it operated in an unsound manner. At the time, the FDIC gave the bank two months to come up with a capital plan. The agency also asked the bank to spell out the qualifications of senior bank officers and indicate whether it plans to hire any experienced banking personnel with requisite abilities.
Darien Rowayton Bank is led by John Bowes, who previously was CEO of Chrysler Capital Corp. and subsequently of a U.S. lending affiliate of Credit Lyonnais.
The company’s founding and current board members and advisors include CEOs, owners or senior executives of a range of local businesses, from collectibles giant MBI Inc. of Norwalk to clothier Darien Sport Shop.
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