EXHIBIT 99
DIME. THE DIME SAVINGS BANK OF NEW YORK, FSB
589 FIFTH AVENUE, NEW YORK, N.Y. 10017
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NEWS
FOR IMMEDIATE RELEASE
CONTACT: MR. DAVID J. TOTARO
(212) 326-6965
MR. MARK M. BODI
(603) 625-5713
UNITED STATES ATTORNEY'S INVESTIGATION OF DIME SAVINGS BANK ENDS
NEW YORK, N.Y. -- (MAY 1, 1996) -- The Dime Savings Bank of New York, FSB, a
wholly owned subsidiary of Dime Bancorp, Inc. (NYSE:DME), today announced that
it had been advised by the U.S. Attorney's office for the District of New
Hampshire and the New England Bank Fraud Task Force of the U.S. Department of
Justice after an extensive, multi-year investigation, that the Bank is no longer
a target of that investigation and that the government will not seek to bring
any criminal or civil charges against the Bank relative to the limited
documentation loan program offered by The Dime in the 1980s.
The government's decision was communicated by Paul M. Gagnon, United States
Attorney for the District of New Hampshire, and Mark D. Seltzer, Director of the
New England Bank Fraud Task Force, in a letter to the Bank's legal counsel. In
the letter the government stated that, "The United States Attorney for the
District of New Hampshire and the New England Bank Fraud Task Force have
carefully considered this matter and it is their conclusion that a prosecution
of the Bank is not appropriate." (A copy of the government's letter is
attached.)
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Dime Savings Bank
May 1, 1996
Page 2.
David J. Totaro, Executive Vice President of Dime Savings Bank, said, "We have
stated from the outset that the Bank did not engage in any illegal conduct and
that there was no factual or legal basis for an indictment of the Bank. We are
grateful that, in the course of its investigation, the government afforded us
the opportunity to state our case, and we are pleased that the government has
now concluded that prosecution of The Dime is not appropriate."
"We have cooperated fully with the federal authorities throughout their inquiry
and, in fact, have been directly responsible for referring a number of alleged
frauds to the appropriate federal officials for investigation and prosecution.
We will continue this cooperation," he added.
-END-
[Logo U.S. Department of Justice]
U.S. DEPARTMENT OF JUSTICE
UNITED STATES ATTORNEY
DISTRICT OF NEW HAMPSHIRE
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Federal Building 603/225-1552
55 Pleasant Street, Room 312
Concord, New Hampshire 03301-3904
May 1, 1996
Robert B. Fiske, Jr.
Davis, Polk & Wardwell
450 Lexington Avenue
New York, NY 10017
RE: Dime Savings Bank of New York, FSB
Dear Mr. Fiske:
This is to advise you that the Dime Savings Bank of New York, FSB (the
"Bank") is no longer considered to be a target of the ongoing grand jury
investigation in the District of New Hampshire of possible violations of the
federal criminal laws arising from the operations of the residential mortgage
loan programs of the Bank, and that of its wholly-owned subsidiaries, Dime Real
Estate Services of New Hampshire, Inc. and Dime Real Estate Services of
Massachusetts, Inc. (collectively the "Dime"), during the period from 1987
through 1989. This ongoing grand jury investigation is being conducted by the
United States Attorney for the District of New Hampshire and the New England
Bank Fraud Task Force of the Fraud Section, Criminal Division, United States
Department of Justice (NEBFTF).
Since the conferral of target status upon the Bank in November 1994 by the
United States Attorney for the District of New Hampshire, the grand jury has
continued to consider evidence. Counsel for the Bank has made several
presentations to the United States Attorney for the District of New Hampshire
and the NEBFTF denying liability on behalf of the Bank and suggesting reasons
why no indictment should be returned against the Bank. Counsel for the Bank
has requested that the United States Attorney for the District of New Hampshire
and the NEBFTF consider numerous factors in evaluating whether prosecution of
the Bank is warranted, including the following:
First, the Bank merged with Anchor Savings Bank in January 1995.
Second, none of the individuals who comprise the current senior management
of the Bank was in a senior management position at the Dime from 1987 through
1989, the period of time which is
applicable to the conduct underlying the ongoing grand jury investigation in the
District of New Hampshire.
Third, the Bank and its shareholders suffered significant financial losses
resulting from defaulted mortgage loans made by the Dime from 1987 through 1989,
some of which stemmed from allegedly fraudulent conduct against the Bank
committed by numerous individuals including convicted former employees of the
Bank's subsidiaries.
Fourth, the Bank has implemented additional procedures to detect, and to
file promptly any appropriate suspicious activity reports regarding fraudulent
schemes that involve hidden secondary financing and no down payment mortgage
loan frauds.
Fifth, the Bank has entered into an agreement with the Manchester
Neighborhood Housing Services, Inc. ("MNHS"), a private nonprofit corporation
dedicated to the revitalization of Manchester's inner city neighborhoods that
focuses on the Center City. Pursuant to this agreement with MNHS, the Bank has
agreed to make a series of grants totalling $2,000,000 to MNHS. The money will
be used by MNHS to assist it and residents of the Center City who wish to
purchase or renovate buildings in certain distressed city neighborhoods.
Sixth, the Bank has entered into an agreement with the Dime Borrowers
Associations of New Hampshire and Massachusetts (the "DBAs") pursuant to which
the Bank has established the DBA Borrowers Assistance Program II. In summary,
the Bank has agreed under this Program to provide eligible borrowers with a
number of options and benefits relating to the loans that they had obtained from
the Dime in the 1980s. These options and benefits include, depending upon
eligibility: restructuring loans; waiving in certain circumstances accrued
interest, late charges, and other fees; forgiving deficiency judgments; and
providing borrowers with the opportunity for obtaining new loans, regardless of
any credit problems that they may have as a result of their prior loans from the
Dime.
Seventh, the Bank has paid the Dime Borrowers Associations $150,000 in
order to enable them to cover their operating costs, including the costs of
providing counseling and other services, such as tax, accounting and legal
advice, and credit rehabilitation counseling.
Eighth, the Bank has agreed to continue to provide complete and truthful
cooperation in connection with the ongoing grand jury investigation in the
District of New Hampshire.
The United States Attorney for the District of New Hampshire and the New
England Bank Fraud Task Force have carefully
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considered this matter and it is their conclusion that a prosecution of the Bank
is not appropriate.
Accordingly, the United States Attorney for the District of New Hampshire
and the New England Bank Fraud Task Force will not bring any criminal
proceedings or prosecutions, civil proceedings, civil money penalties, civil or
criminal forfeitures or other proceedings against the Bank for any act, omission
or transaction that was allegedly committed at the Dime which was the subject of
the ongoing investigation. The scope of the ongoing grand jury investigation in
the District of New Hampshire does not extend to the Internal Revenue Laws,
Title 26, United States Code. Consequently, this letter does not apply to any
proceedings, civil or criminal, pursuant to Title 26, United States Code.
In no event is this letter intended to, nor is it to be construed to,
constitute a release of any potential criminal or civil liability, or in any way
create a benefit in favor of any individual, including any former employee,
officer, director, or agent of the Dime. The United States Attorney for the
District of New Hampshire and the New England Bank Fraud Task Force expressly
reserve the right to prosecute any individual, including any former employee,
officer, director or agent of the Dime, for any and all federal criminal
violations which become known to them in connection with the ongoing grand jury
investigation.
Due to the attendant publicity surrounding the Bank's public disclosure of
its target status, the United States Attorney for the District of New Hampshire
and the New England Bank Fraud Task Force will jointly release this letter to
press and media.
Sincerely
/s/ Paul M. Gagnon
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PAUL M. GAGNON
United States Attorney
District of New Hampshire
/s/ Mark D. Seltzer
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MARK D. SELTZER
Director
New England Bank Fraud Task Force
Criminal Division/Fraud Section
U.S. Department of Justice
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