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Rio Grande City scenario San Antonio State regulators moved too slowly to please the House subcommittee, but federal officials may have acted too quickly in Rio Grande City \(see Obs., granted a new national bank charter over a weekend after First State Bank and Trust was closed by the state banking commissioner. The state bank, controlled by Clinton Nov. ing Monday under a new federal charter. Rep. St Germain was amazed: “Gentlemen, you’re talking about overnight charter of a bank, and I’m asking how this overnight crowning occurred.” Commissioner Stewart explained that under the Texas Administrative Procedures Act, passed by the Texas Legislature to prevent state agencies from taking action without adequate public notice, the state can no longer grant emergency charters. The state board is now required to give ten days’ notice before granting a charter. The federal chartering entity, the comptroller of the currency, is under no such restriction. Federal bank charters generally take several months to process, and citizens are given opportunity in nonemergency situa tions to register opinions about new charters. Mike Doman, regional administrator for the comptroller of the currency, told the subcommittee that the weekend action is unusual, but it is “the third such action in Texas this year.” Federal officials explained that they had skipped some of the usual steps in granting the bank , charter because the failed bank was the only bank in the county, and depositors would have been hurt by slow action in reopening the bank. Nonetheless, Rep. Gonzalez noted that the comptroller of the currency ignored routine investigative procedures “in his haste to grant a national bank charter” to the bank buyers. “I do not suggest that there is anything wrong with the new ownership group, but merely wish to point out that perhaps less The cast of characters THE SUBCOMMITTEE The U.S. House Banking, Currency, and Housing Subcommittee on Financial Institutions Supervision, Regulation, and Insurance. Rep. Fernand J. St Germain Democrat from Rhode Island, chairman. Rep. Henry B. GonzalezDemocrat from San Antonio, member. Rep. John RousselotRepublican from California, member. SAN ANTONIO GROUP* Owned controlling interest or invested in Citizens State Bank of Carrizo Springs Clayton, N.M. Ron BrambleSan Antonio investments consultant who put together bank deals for the San Antonio Group; head of Bramble and Associates, Centerview Investments, Centerview Ltd.; director at Citizens State who received a $1,500 monthly consulting fee from the bank. Dr. Willard MertzFormer economics professor at St. Mary’s University in San Antonio; associated with Bramble in Centerview Investments and Bramble and Associates. Dr. James E. BauerleA University of *The staff of the House banking subcommittee used the designations “Salinas Group,” “Harper Group,” and “San Antonio Group” on charts and loan lists compiled for use during the hearing by the subcommittee members. The charts were displayed during the questioning of certain witnesses. Since no one from the “Beebe-Barnes Group” attended the hearing, some of the charts concerning this group were not introduced into evidence, but Rep. Henry Gonzalez made specific references to the “Beebe-Barnes Group” in his concluding remarks. 4 The Texas Observer Texas regent and San Antonio oral surgeon; chief investor in now-defunct proprietary school, Parish-Draughon’s of San Antonio. Norm BevanInvestments consultant involved with ill-fated San Antonio Wings WFL football team; associated with Moneymasters, Inc., and Investors Properties Ltd. William T. HarrisInvestor in Wings; major stockholder in Eagle Life and Washington American Insurance Cos. \(the latter San Antonio and Citizens State. Jack S. BrownSan Antonio engineer and rancher. Urban FarrowCounty attorney for Dimmit County and longtime director of Citizens State. Richard GeorgeCitizens State president and Carrizo Springs rancher. ENRIQUE SALINAS AND FAMILY Salinas owned controlling interest or invested in Citizens State Bank of Carrizo Springs \(closed by state banking commisrity State Bank of McCamey \(Upton Enrique SalinasU.S. citizen, resident of Eagle Pass; president of Bensal Corp., once secretary-treasurer of Maverick Air Inc. He insists, “There is really no Salinas group.” Gretchen Bentley SalinasEnrique’ s wife; director of Bensal Corp., owner of Galleria, antique and jewelry store in Eagle Pass. Juan M. SalinasOne of Enrique’s brothers, Mexican citizen, apparently died in a plane crash in Mexico on June 21. Enrique says that Juan was actually a member of the Harper Group. Luis E. SalinasEnrique’s other brother, Mexican citizen, got loans from Citizens State collateralized by real estate and livestock in Mexico. Bicknell T. Eubanks IIIAn Eagle Pass customs inspector who sometimes checked in the Salinases after their plane flights into Mexico; had loans at Citizens State, including $40,000 to pay off note on plane owned by Luis Salinas., Atilano de la GarzaMexican citizen, owned plane in which Juan Salinas crashed; also owned land where plane crashed; at least one of his many loans from Citizens State was endorsed over to Juan Salinas. Ron GuessInvestment counselor who worked on contract basis for Bramble and Associates; president of Maverick Air Inc.; participant in the great watermelon caper. BEEBE-BARNES GROUP Own or owned controlling interest or invested in Bossier Bank and Trust of Bossier, City, La. \(Beebe is chairman of the First Bank of Coppell \(Barnes, Bennett, and Louisiana \(100 percent owned by AMI, Life Insurance Co. of Texas \(Beebe and Commercial Life Insurance of Alexandria, Insurance Co. of Fort Worth \(Freeman,