Review of the Failure of Bank of Whitman

March 22, 2013

Memorandum

Consistent with the requirements of section 38(k) of the Federal Deposit Insurance Act, 12 U.S.C. 1831o(k), as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Office of Inspector General conducted an in-depth review of the failure of Bank of Whitman.

We provided the Division of Banking Supervision and Regulation with a draft of our report for review and comment. In your response, you indicated that your staff acknowledged the conclusions and lessons learned in the report and will follow up on the report's recommendation. The response is included as appendix C.

We appreciate the cooperation that we received from Federal Reserve Bank of San Francisco and Board of Governors of the Federal Reserve System staff during our review. This report will be added to our public website and will be summarized in our next semiannual report to Congress. Please contact me if you would like to discuss this report or any related issues.