Two Former Bankers Lose Appeal to Vacate Enforcement Action

Two former bankers lost their Tenth Circuit petition Tuesday challenging an enforcement action that barred them from the banking industry.

Frank Smith and Mark Kiolbasa unsuccessfully argued that the Board of Governors of the Federal Reserve System couldn’t institute the enforcement action since it didn’t have authority over the bank where the misconduct allegedly occurred.

Smith and Kiolbasa were both executives at Central Bank & Trust in Wyoming, a state bank that isn’t part of the Federal Reserve System and is supervised by the Federal Deposit Insurance Corporation instead. They both left Central by the end of 2018 and went ...