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December 10, 2022

COD- Political Endorsements fail the public?

By Kirk Allen & John Kraft

On March 22, 2015

DuPage Co. (ECWd) –

We have been around the block a few times and are always amazed to see how little effort is put into truly vetting candidates before endorsements are given.  A past disaster in our own district was the disgraced Roger Eddy.  Less than a month after former Governor Edgar endorsed Roger Eddy, our efforts of exposing his wrong doing resulted in his resignation from both the Primary run off, as well as his seat in the House of Representatives.  Had people vetted properly they could have avoided serious embarrassment.

Is it possible we have the same thing going on with COD and recent endorsements from the Daily Herald and the DuPage GOP?  Both have endorsed candidate Matt Gambs, a banker from Naperville who was formerly the CEO at Diamond Bank of Schaumburg.

Issues with COD that I think we can all agree need addressed are the following, but by all means not meant to be limited to these items.

  • Need of a business plan
  • Stop insider dealings
  • Need outside review
  • Cease golden parachute payments
  • Weak trustees must be replaced
  • Cease violations of law
  • Suspect contracting and compensation

If you are in agreement with the above bullet points, then I can only say voters beware when you walk into the ballot box and cast your vote.

The United States Treasury, Office of Thrift Supervision (OTS), the successor to the Federal Home Loan Bank Board, was established by Congress on August 9, 1989 as the primary federal regulator of all federal and state-chartered savings institutions across the nation that belong to the Savings Association Insurance Fund (SAIF).  OTS issues federal charters for savings and loan associations and savings banks.  This Bureau also adopts and enforces regulations to ensure that both federal and state-chartered thrift institutions operate in a safe and sound manner.

As we all know, COD is in desperate need of leadership, accountability, and transparency, but also a clean slate, as in an untarnished track record for future trustees.  That last item is crucial in order to help bring  trust back to an institution that has destroyed any trust the public has in them.

What does Matt Gambs’ private banking issues have to do with his candidacy for COD Trustee? 

OTS finds that the Association has engaged in unsafe or unsound banking practices.

  • Operating in violation of Section 22(h) of the Federal Reserve Act, 12 U.S.C. § 375b
  • Operating in violation Part 215 of Regulation O of the Board of Governors of the Federal Reserve System, 12 C.F.R. Part 215
  • Operating in violation of the substantially same terms requirement of Section 23B of the Federal Reserve Act, 12 U.S.C. § 371c-1(a)(1)(A), and Section 223.51 of Regulation ‘W’ of the Board of Governors of the Federal Reserve System, 12 C.F.R. § 223.51,

The order below is from the official US Government / Office of Thrift Supervision findings upon which the “Cease and Desist” order requires affirmative steps by the institution, in this case, led by Matt Gambs, COD Candidate for Trustee.  Note that a cease and desist order comes late in a process of events.  Prior to a cease and desist there would have been a ‘letter agreement’ and an ‘official notice”.  Failing to adequately solve the issues presented is what leads to a cease and desist order.

US Treasury, Office of Thrift Supervision

ORDER TO CEASE AND DESIST 

Effective Date: September 24, 2010

Diamond Bank FSB – Matt Gambs, Director

What points are raised by the US Treasury Office of Thrift Supervision that should be of major concern to voters in the COD District 502 election?

  • Paragraph 16 Insider dealings
  • Paragraph 4Need a business plan
  • Paragraph 19 and 21Need outside review
  • Paragraph 34Cease golden parachute payments
  • Paragraph 28 and 35Weak directors must be replaced
  • Paragraph 31Cease violations of law
  • Paragraph 36Suspect contracting and compensation

It is interesting how the issues pointed out by the Federal Authorities when Mr. Gambs was the CEO appear to parallel those same problem areas at COD.

If Mr. Gambs’ needed outside Federal supervision to correct violations of law at his day job, what makes you think the same won’t be the case if elected to COD Trustee?

Voters Wake up!

[gview file=”https://edgarcountywatchdogs.com/wp-content/uploads/2015/03/Diamond-Bank-consent-order-20101.pdf” save=”1″]

(Click here for copy of Cease and Desist Order)

(Click here for the OTS Web Site with the above file)

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2 Comments
  • Gerard H Schilling
    Posted at 04:20h, 23 March

    Birds of a feather- If you like the current trustees you’ll love Gambs who personifies all the corrupt practices currently demonstrated by COD’s administration and board. The Clean Slate of candidates number 6,7 and 8 on the ballot supported by Kathy Hamilton is the solution.

  • Byron Douglas
    Posted at 15:51h, 23 March

    From the Daily Herald/Paddock Publications

    “In our research for the endorsements, we explored the charge implied on this link as well as other charges directed behind the scenes at other candidates. We were persuaded by the evidence that there was nothing untoward in the Diamond Bank matter, one of many bank crises that took place during this time period, and that Matt Gambs’ role was one of trying unsuccessfully to save a struggling and undercapitalized bank.

    We found nothing to suggest professional or ethical malfeasance on his part, and in fact, our Board believes the tough decisions he was forced to make as part of that experience may serve him well if elected to the COD board.”

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