After the Board's August 1981 approval of the acquisition of the First American banks by CCAH, Sheikh Zayed and his oldest son, Khalifa, became substantial investors in the CCAH, each one holding about 10 percent of its voting shares.
The Federal Reserve has not, however, had access to all of the evidence relating to the ownership of CCAH shares by members of the Abu Dhabi ruling family and related interests and has requests outstanding for access to witnesses and documents in Abu Dhabi.
Second, the courtappointed fiduciaries agreed to comply with the Federal Reserve's order of March 4, which requires BCCI to divest its interest in CCAH, First American Bankshares' parent holding company.
Since the discovery in late 1990 of BCCI's control of certain shares of CCAH (First American Bankshares' parent holding company), the Federal Reserve has actively sought to achieve a complete legal separation of the First American banks from BCCI.
In January 1989, after receipt of these allegations, the Federal Reserve conducted a special review of CCAH and its relationship to BCCI, examining the financial relationship between BCCI and the First American banks.
Attorney's Office whether their investigation had unearthed any evidence that BCCI owned or controlled CCAH. The U.S.
Once the acquisition was consummated, the supervision of CCAH and First American fell to the Federal Reserve Bank of Richmond, which also had been responsible for supervising Financial General.
In the years immediately after the acquisition, there was no evidence developed through the supervisory process to suggest that CCAH and First American were functioning other than in accordance with the statements made to the regulatory authorities at the time of the application.
Events have made the requirement that BCCI divest the shares of CCAH under its control more difficult to achieve.
The Board is also exploring other avenues to regularize the ownership of CCAH and Independence.
As a result of the SEC case, the Board focused great attention on the relationship between CCAH and the BCCI, specifically whether the BCCI had a stake in the planned acquisition, either directly or indirectly.
In response to the Board's questions, CCAH and its principal shareholders stated that the BCCI would not be involved in the acquisition other than as an investment adviser to the CCAH investors and, in particular, would not fund the acquisition.