Feds settle with Commerce's Vernon Hill; ex-CEO in talks with TD

The federal Office of the Comptroller of the Currency has ended its investigation of former Commerce Bank CEO Vernon Hill by ordering him to comply with conflict-of-interest rules when he does future real estate deal with banks where he's an officer. Hill says he's vindicated, since bankers have to do that anyway: "After two years of running us out of business, they have nothing."

The feds also ordered Hill to pay TD Bank $4 million, but Hill says that payment will be worked into the settlement of a lawsuit he lodged against TD when it bought Commerce last year, so "there's no money out of my pocket."

From the OCC: "The Order places restrictions on Mr. Hill’s future real estate transactions with any associated insured depository institution, holding company or any of their subsidiaries or affiliates.

"Mr. Hill must report all future transactions to the board and the audit committee of the institution involved in the transaction. Additionally, when Mr. Hill is an officer, director or major shareholder, he must obtain an opinion that the transaction is fair from an independent accounting or other firm with appropriate expertise.

"The Order also requires Mr. Hill to pay $4,000,000 to TD Bank, as the successor of Commerce Bank, in the form of an offset to the amount Mr. Hill claims is due to him.

"Today’s action by the OCC is the result of the same investigation that led to the issuance of a cease and desist order against Commerce Bank, dated June 28, 2007," the day TD bought Commerce. 

- Stipulation and Consent Order  http://www.occ.gov/ftp/release/2008-135a.pdf