2025 CT DOB Receivership Firm RFP.pdf

TEL: (860) 240-8299 FAX: (860) 240-8178

http://www.ct.gov/dob An Affirmative Action/Equal Opportunity Employer

STATE OF CONNECTICUT

DEPARTMENT OF BANKING

FINANCIAL INSTITUTIONS DIVISION

260 CONSTITUTION PLAZA – HARTFORD, CT 06103

REQUEST FOR PROPOSALS THIRD PARTY RECEIVER OR CONSERVATOR

The Connecticut Department of Banking (the “Department”) requests written proposals from one or more qualified, consulting or other professional firms, to provide assistance to the Department in the event a Connecticut-chartered bank or credit union fails or is on the verge of failing and needs to be placed into a receivership or conservatorship.

Connecticut General Statutes Section 36a-222(b) permits the Banking Commissioner (the “Commissioner”) to retain consulting or other professional firms to assist in the liquidation of a bank or credit union’s business in the event an institution fails or is close to failing and must be placed into receivership or conservatorship. Should the Commissioner determine a third party is necessary to assist in the receivership or conservatorship of a bank or credit union, the Commissioner will utilize the firm(s) retained by the Department.

Please be advised that submitting information in response to this Request for Proposals (“RFP”) does not constitute a contract for service between your firm and the Department or the State of Connecticut. A contract will be awarded to the Respondent or Respondents whose response the Department deems to be the most advantageous to the Department, in accordance with the criteria set forth in this RFP solicitation, taking into account the quality of the deliverables to be supplied, their conformance with specifications, delivery terms, price, administrative costs, past performance and financial responsibility.

The Department will not reimburse any expenses incurred in connection with this RFP including, but not limited to, the cost of preparing the initial response and any additional information requested, travel expenses or supplies relating to any presentations. Should your firm or sole proprietorship be awarded a contract, all contract negotiations will be facilitated by and follow the State of Connecticut contract procedures set forth by the Connecticut Department of Administrative Services.

Responses provided to the Department are matters of public record unless otherwise noted in the Connecticut Freedom of Information Act, Access to Public Records, Section 1-210 of the Connecticut General Statutes, and will be considered property of the Department that may be disseminated to the general public and other interested parties.

OVERVIEW OF DEPARTMENT OF BANKING

The Department regulates the financial services industry in Connecticut. The Department is the primary state regulator for state-chartered banks, Innovation Banks, credit unions, securities, and consumer credit. We advocate for consumers and investors and regulate businesses and individuals that are under our jurisdiction. The Department is committed to protecting Connecticut residents in transactions covered under state law and providing assistance with complaints and dispute resolution.

The Financial Institutions Division (the “Division”) is responsible for the supervision of insured state-chartered banks and trust companies, savings banks, Innovation Banks, savings and loan associations, credit unions, and Innovation Banks. The Division is responsible for assessing applications for new bank or credit union charters, acquisitions, mergers, conversions, branches, changes in corporate structure, and credit union field of membership expansions. More information about the Financial Institutions Division can be found at the link below.

https://portal.ct.gov/dob/consumer/consumer-help/industry-information.

SCOPE OF SERVICES

In the event the bank or credit union is experiencing significant financial difficulty, and the circumstances warrant further intervention by the Department, the Commissioner has the authority to determine whether the institution should be placed into a receivership or conservatorship.

In the event a bank or credit union must be placed into receivership, the Department’s primary objective is to maintain public confidence by engaging in a transparent and equitable wind down of the institution’s business. The Department does this by facilitating the liquidation of the bank or credit union in an expeditious, cost-effective manner. The scope of services to be rendered is assisting the Commissioner and the Department in winding down the bank or credit union’s business, which includes, but is not limited to, liquidating the institution’s assets, securing finances, securing facilities, corresponding with customers and the general public, retaining and terminating employees and any other activities associated with the receivership process.

In a conservatorship, the Department’s primary objective is to carry on the business of the bank or credit union, to preserve and conserve the assets and property of the institution, and to return the bank or credit union to a safe and sound condition or transfer the business of the institution to a successor institution. The scope of services to be rendered includes, but is not limited to, assisting the Commissioner and the Department in preserving the assets and franchise value of the bank or credit union, maintaining critical operations in order to rehabilitate the bank or credit union to a sound condition and preparing the bank or credit union for an orderly transfer to a successor institution.

https://portal.ct.gov/dob/consumer/consumer-help/industry-information

QUALIFICATIONS

Prospective approved consulting or professional firms must have experience advising financial institutions and/or regulators and must be comprised of a team of experienced professionals that includes specialties such as regulatory compliance, crisis management, and accounting. Firms should also be comprised of a team with an understanding of Federal Deposit Insurance Corporation (“FDIC”) insured banks, credit unions, uninsured financial institutions and extensive knowledge of federal, state and banking and credit union laws. Documentation shall be made available for verification of qualifications.

REQUESTED INFORMATION

1. Provide a brief description of your firm, its history, main areas of business and experience with financial institutions, particularly banks and credit unions;

2. Provide a summary of the key strengths and qualifications of your firm to assist with the receivership or conservatorship of a bank or credit union;

3. Provide a list that specifies the type of financial institutions with which your firm has experience, e.g. banks, credit unions, trust companies, and uninsured banks, including, but not limited to, entities engaging in merchant acquiring activities, wholesale banking, payments processing or banknote distribution;

4. Provide copies of any applicable licenses;

5. Describe your presence in Connecticut, if any, including corporate existence in Connecticut, whether formed in Connecticut or authorized to do business in the state. This may include, but not be limited to, information on the number of offices your firm maintains in Connecticut, the location of such offices, and the number of Connecticut residents employed in those offices. If your firm currently is not registered with the Connecticut Secretary of State, please indicate whether your firm will register if your firm is selected for the Department’s list;

6. Provide a brief summary and resume of the professional background of any individual(s) who would be assigned to work on a bank or credit union receivership or conservatorship. Please indicate their probable areas of responsibility and the percentage of their time which would be available to participate in the bank or credit union receivership or conservatorship process;

7. Submit a fee schedule for your services that includes the hourly fee for services and detail any additional expenses such as travel, administrative and other expenses;

8. Describe the employee composition of your firm including representation of minorities and women along with their titles;

9. Submit specific information regarding your firm’s commitment to Affirmative Action, Equal

Employment Opportunity and/or Diversity, Equity and Inclusion. Please include any policies your firm has implemented regarding non-discrimination, anti-harassment, and/or compliance with federal, state and local affirmative action and equal opportunity laws. Please also provide any policies and practices, including but not limited to hiring practices, and any information that would demonstrate your firm’s commitment to expanding diversity in the workplace, including recruiting initiatives, retention and promotion efforts and ongoing assessment of your firm’s progress with respect to underrepresented groups (e.g., in terms of ethnicity, gender, sexual orientation, disability, etc.). Please include your firm's most recent EEO-1 report if required to file;

10. Describe any and all material lawsuits, legal or administrative proceedings or governmental investigations, criminal actions or law enforcement activities (including those by federal, state or local authorities, or self-regulatory organizations) or non-routine inquiries or investigations relating to you, your firm, or any of your affiliates, including any proceedings to which you, your firm, your affiliates or any of their respective officers, directors or employees are a named party or of which any of such has been the focus, that have occurred in the last three (3) years or that are currently threatened, including whether you, your firm, or any of your affiliates, or their respective officers, directors or employees have been censured by any regulatory body.

Describe any such circumstances and advise whether these investigations or proceedings will affect you or your firm’s ability to complete the proposed transaction and perform the services in this RFP;

11. Describe whether you foresee any potential conflicts of interest arising from providing your services to the Department, if so, describe how your firm would address potential conflicts of interest;

12. Has your firm ever been removed from an account prior to the expiration of its contract (i.e., been fired or released due to a restructure)? If so, please explain. If you wish, list the name of a third party with whom the Department could discuss this termination;

13. Describe your firm's knowledge of and experience with Connecticut banking regulations, statutes and charters;

14. Describe your firm’s knowledge and experience with bank receiverships or conservatorships including, but not limited to, assisting any banks, state banking departments or the FDIC with bank failures and the receivership process or serving as conservator for a financial institution;

and

15. Please provide a list of specific financial institutions that your firm has worked with in the past and indicate the specific work performed for each financial institution. Please include as references any other State of Connecticut agencies or departments that have engaged your firm to perform services. The Department may request your firm provide contact information from any referenced financial institution to verify the extent and quality of the work performed.

EVALUATION CRITERIA

Responses to this RFP will be evaluated on the basis of the submitted written responses, additional written information as requested by the Department, and the following criteria:

• Qualifications of personnel;

• Banking regulatory experience;

• Experience with traditional depository institutions and uninsured non-depository institutions;

• Experience consulting on bank or credit union failures and the receivership of financial institutions;

• Experience consulting on conservatorships of banks or credit unions or serving as a conservator of a financial institutions;

• Prior experience preparing and analyzing financial statements; and

• Possessing a well-rounded team and network, comprised of various professional backgrounds which includes employees of the firm and third-party vendors under contract with the firm, necessary to assist with the receivership or conservatorship of the bank or credit union, including, but not limited to, regulatory compliance, crisis management, or accounting.

SUBMISSION OF RESPONSES

The following requirements must be observed in the preparation and submission of proposals:

1. All inquiries should be direct to Matt Saunig, Senior Assistant Division Director, at matthew.saunig@ct.gov. Firms submitting information should not contact any other member of the Department, which may be grounds for elimination of consideration.

2. The entire submission should not be more than fifteen (15) single sided pages.

3. One submission per firm.

4. Submission must be sent electronically to Matt Saunig, Senior Assistant Division Director, at matthew.saunig@ct.gov no later than January 16, 2025. Information submitted in other formats will not be considered.

mailto:matthew.saunig@ct.gov mailto:matthew.saunig@ct.gov

FREEDOM OF INFORMATION ACT

Please be advised that all information submitted in response to this RFP or in response to a request for additional information is subject to disclosure under the Connecticut Freedom of Information Act, as amended and judicially interpreted. If a firm believes that submission or additional response(s) contains financial, trade secrets or other data that it claims should not be public (“Confidential Information”), the firm must identify specifically the pages and portions of its submission or additional information that contain the claimed Confidential Information by visibly marking all such pages and portions. An entire response marked Confidential Information will not be accepted. If the Department receives a request for an applicant’s Confidential Information, it will use its best efforts to notify the firm of such request and provide the applicant with a copy of any written disclosure request, provided, the Department will not be liable to the firm or any other party for any failure to act as described herein. The firm may provide written consent to the disclosure or may object to the disclosure by notifying the Department in writing, identifying in the notice the basis for its objection, including the appropriate statutory exemption(s) from disclosure. The firm shall be responsible for defending any complaint brought in connection with the nondisclosure, including, but not limited to, appearing before the Freedom of Information Commission, providing witnesses and documents as appropriate, and for payment of the Department’s costs and expenses, including attorney fees.