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April 7, 2004


'Bank of Presidents' Stumbles DOW JONES REPRINTS
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From Tyler to Pinochet • See a sample reprint in PDF
By GLENN R. SIMPSON • Order a reprint of this article now.
April 7, 2004; Page.41

WASHINGTON -- In the early 1980s, Riggs Bank ran advertisements calling itself "the most
important bank in the most important city in the world."

That claim captured the bank's special status here, where it has long enjoyed a close relationship
with the U.S. government and the capital's large diplomatic contingent. And it reflected the
ambitions of Joe L. Allbritton, then the bank's chairman, to make himself a powerful Washington

Today, the bank's connections are drawing intense scrutiny from federal investigators looking into
terrorism financing. Under pressure from the probes, Riggs is now planning over time to exit the
diplomatic banking business entirely, possibly by selling it, according to people familiar with the
matter. The bank already terminated its lucrative relationship with the Embassy of Saudi Arabia
last month.

While the diplomatic business isn't very profitable, it has been a calling card for Riggs and
accounts for about 23% of Riggs' $4.2 billion in deposits. The bank deals with about 95% of the
city's 160-some embassies and missions.

The FBI and federal regulators are probing huge cash withdrawals by the Saudis and have accused
Riggs of failing to alert regulators of suspicious transactions. The Office of the Comptroller of the
Currency has classified Riggs as a "troubled institution" for failing to adequately tighten its
money-laundering controls despite an order to do so. The office is considering a fine. On Tuesday,
Moody's Investors Service changed its outlook on Riggs to "negative" from "stable."

Regulators are also pursuing a second, previously undisclosed, line of inquiry into whether Riggs
violated "know your customer" record-keeping laws in its dealings with foreign customers of its
private banking division, according to lawyers and investigators. Treasury Department
investigators are digging into the relationship between Riggs and high-risk foreign customers,
including former Chilean leader Augusto Pinochet.,,SB108128688499075866,OO.html 4/7/2004
"The legislation that transformed the military was very controversial at the time, and the military
resisted," Mr. Hastings said. "In some ways, the intelligence community is in the same position
the military was prior to 1986, too much duplication, too much competition, not enough
coordination and not enough collaboration."

He said another issue that must be addressed is the lack of diversity in the intelligence branches.
He said the United States must recruit Middle Easterners, blacks, Koreans, Vietnamese and any
other minorities to be effective in gathering intelligence in other countries.

"James Bond is not going to infiltrate Bora Bora," Mr. Hastings said.

Porter J. Goss, Florida Republican and chairman of the intelligence committee, said there is a
possibility that some of what the Democrats are calling for could be done this year.

"I intend to do an authorization bill, finish the weapons-of-mass-destruction inquiry in the next few
months and then look at the architecture of the intelligence community," he said.

Mr. Goss said he has been coordinating with Sen. Bob Graham, Florida Democrat, to insure that
there will be continuity in the Senate when the House makes its move to restructure the
intelligence community.

34. Probe of Riggs's Handling of Saudi Cash Intensifies

The Wall Street Journal

Federal officials have intensified their inquiries into Riggs Bank's handling of large amounts of
cash for foreign accounts, and a central focus is on the bank's failure to file "suspicious activity"
reports on dozens of large withdrawals from the personal accounts of Saudi Arabia's longtime
ambassador to Washington. Pressure from multiple investigations has caused a rupture in the
longtime relationship between the Saudis and Riggs, which was terminated last month, a few
days after the bank called in a large personal loan to Saudi Prince Bandar bin Sultan and another
to the embassy.

In 2001 and 2002, Prince Bandar, his wife or his aides withdrew more than $20 million in cash
from their personal accounts, according to regulatory officials and lawyers involved in the matter.
Riggs, a unit of Washington's Riggs National Corp., acknowledges it failed to file required
"suspicious activity" reports on the withdrawals, which were made with sequentially numbered
checks. Banks are required to file "suspicious activity" reports on large cash
transactions that occur frequently or without a clear purpose.

Regulators are threatening to impose new requirements and other penalties on Riggs. And the
bank says in securities filings that it expects to be classified by the Office of the Comptroller of
Currency as a "troubled institution" for failing to adequately tighten its controls against money
laundering despite an order to do so last year. Such a designation requires the bank to adopt
asset- preservation measures, calls for ratcheting up regulatory scrutiny and limits the ability of
top executives to resign with large severance packages.

Riggs, which has long dominated the capital's lucrative market for diplomatic banking, has
struggled since the attacks of Sept. 11, 2001, to come to grips with the U.S. government's intense
new scrutiny of funds from the Middle East, where financial oversight is more casual, and client
relationships are heavily based on trust.

Bush Should Cry Uncle and Release Saudi Info By Allan P Page 1 of2

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Bush Should Cry Uncle and Release Saudi li
By Allan P. Duncan

"We will direct every resource at our command to win the war against terrorists, every means of diplomacy, every
intelligence, every instrument of law enforcement, every financial influence. We will starve the terrorists of funding
President George W. Bush, September 24, 2001

Tough words from Bush less than two weeks after the most devastating attack in American history. Over time thoi
have become the words of a paper tiger when it comes to actually dealing with those who were clearly involved in
the attacks on 9-11.

With the release of the Congressional Joint Inquiry Report on 9-11, the Bush Administration forced the redaction c
pages from the report on the role of Saudi Arabia and another unnamed country ( Pakistan is my guess), in financ
Laden. Their reasoning is that it would compromise our national security for the information to be made public.

I think that the reason the information was not released is because it would reveal embarrassing information abou
term relationship between the Saudis and the Bush family itself.

Some of the information that was revealed pertained to two of the hijackers, Khalid al-Mihdhar and Nawaf al-Hazn
According to the report,

"This Joint Inquiry confirmed that these same two future hijackers, Khalid al-Mihdhar and Nawaf al-Hazmi, had nui
contacts with a long time FBI counterterrorism informant in California and that a third future hijacker, Hani Hanjour
apparently had more limited contact with the same informant."

"The informant has made numerous inconsistent statements to the FBI during the course of interviews after Septe

"The Administration has to date objected to the Inquiry's efforts to interview the informant in order to attempt to r
those inconsistencies. The Administration also could not agree to allow the FBI to serve a Committee subpoena
deposition notice on the informant. Instead, written interrogatories from the Joint Inquiry were, at the suggestion o
provided to the informant. Through an attorney, the informant has declined to respond to those interrogatories anc
indicated that, if subpoenaed, the informant would request a grant of immunity prior to testifying.

Why would The Administration want to block a more thorough investigation into what the FBI informant might ha

Maybe because there is far more to this story than most people know. 3/26/2004
Riggs Bank - Discover Riggs - May31 00 Page 1 of 1

RIGGS For the most important
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DiscoverRiggs Se
Press Releases
Dudley Elected Chairman of Riggs Investment Management
Subsidiary; Bush to Serve as President & CEO
Riggs History
Press Releases Washington, D.C., May 31, 2000 - Riggs Bank N.A. today
Quarterly Earnings announced that the Board of Directors of RIMCO, a wholly owned
Annual Report and Proxy investment management subsidiary, has elected Jonathan J. Bush
Statement President & Chief Executive Officer and a Director, replacing Philip
SEC Filings Tasho who resigned. In addition, Henry A. Dudley, Jr. was elected
Section 16 Filings
Code of Conduct
Mr. Bush will continue as Chairman and Chief Executive Officer of J.
Riggs National Corp.
Bush & Co., an investment management company he founded in
1970, which Riggs acquired in 1997. Mr. Dudley, a 24-year veteran of
Riggs, will continue to be responsible for all of Riggs Bank's
Branch and ATM Locator investment management, trust and private banking business.
Career Opportunities
Contact Us Located in the nation's capital, Riggs Bank has 53 branches in the
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In the Matter of: )
Riggs Bank National Association )
McLean, Virginia )


The Comptroller of the Currency of the United States of America ("Comptroller"),

through his National Bank Examiner, has examined Riggs Bank National Association, McLean,

Virginia ("Bank"), and his findings are contained in the Report of Examination for the

examination that commenced on January 6, 2003 ("ROE").

The Bank, by and through its duly elected and acting Board of Directors ("Board"), has

executed a "Stipulation and Consent to the Issuance of a Consent Order," dated July 16, 2003,

that is accepted by the Comptroller. By this Stipulation and Consent, which is incorporated by

reference, the Bank has consented to the issuance of this Consent Order ("Order") by the


Pursuant to the authority vested in him by the Federal Deposit Insurance Act, as

amended, 12 U.S.C. § 1818, the Comptroller hereby orders that:

Article I


(1) The Board shall maintain its BSA Compliance Committee ("Committee"), which

shall be comprised of at least three (3) directors. A majority of the Committee shall not be

employees of the Bank or family members of any such person. Upon the change in any member

of the Committee, the name of the new member shall be submitted in writing to the Assistant