Exhibit 10.2

UNITED STATES OF AMERICA
DEPARTMENT OF THE TREASURY
OFFICE OF THE COMPTROLLER OF THE CURRENCY

             

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In the Matter of:
    )      

    )      
Riggs Bank N.A.,
    )               AA-EC-04-54
McLean, Virginia
    )      

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MODIFICATION OF EXISTING CONSENT ORDER DATED MAY 13, 2004

     The Comptroller of the Currency of the United States of America
(“Comptroller”) and Riggs Bank N.A., McLean, Virginia (“Bank”) hereby agree to
the following modifications to the existing Consent Order dated May 13, 2004
(“Consent Order”). 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 Modification of the Consent Order,” dated January 27, 2005 (“Modified Order”),
which is accepted by the Comptroller. By this Stipulation and Consent, which is
incorporated by reference, the Bank has consented to the issuance of this
Modification Order by the Comptroller. This Modified Order supplements, but does
not replace, the Consent Order. Specifically, Articles III, V, and VI of the
Consent Order shall remain in effect without modification; Articles I and IV of
the Consent Order shall be replaced as set forth below; Article II of the
Consent Order shall be supplemented as set forth below; and Articles IV and V of
this Modified Order shall be additional obligations as set forth below.

     Pursuant to the authority vested in her by the Federal Deposit Insurance
Act, as amended, 12 U.S.C. § 1818, the Comptroller hereby orders that:

ARTICLE I
BOARD TO ENSURE COMPETENT MANAGEMENT

     This Article shall replace Article I of the Consent Order to read as
follows:

 

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     (1) Within sixty (60) days, the Bank’s Board shall cause the Bank to
complete an updated written report regarding the staffing skills and levels
required to fulfill the Bank’s continuing obligations pursuant to the Consent
Order, to fulfill its continuing obligations pursuant to the Consent Order dated
July 16, 2003, and to implement the Bank’s Capital Plan, Strategic Plan, and
Contingency Plan required by this Modified Order, as set forth below. The Report
shall also include a listing of positions that are open and need to be filled; a
listing of positions that are open, but do not need to be filled, with
documentation supporting the reasons those positions do not need to be filled; a
methodology for filling vacant positions, timeframes, and a methodology for
identifying and retaining current employees, especially employees necessary to
ensure compliance with the Consent Order and this Modified Order.

     (2) Within thirty (30) days of completion of the updated written report,
the Board shall: (i) evaluate the report; (ii) determine whether to adopt the
report in part or in full; (iii) determine whether management or staff changes
should be made, including the need for additions to or deletions from current
management or staffing; (iv) determine whether the skills of management and
staff need improvement; and (v) cause the Bank to develop an action plan to
implement the Board’s determinations about the report (“Action Plan”).

     (3) Upon completion of the Action Plan, a copy of the written report and
the Action Plan shall be submitted to Assistant Deputy Comptroller John F.
Curtis (“Assistant Deputy Comptroller”), Office of the Comptroller of the
Currency, 250 E St., S.W., Washington, D.C. 20219, for his prior written
determination of no supervisory objection to the Action Plan.

     (4) Upon receipt of a written determination of no supervisory objection,
the Board shall immediately implement and thereafter ensure adherence to the
Action Plan.

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     (5) The Bank’s management shall provide a monthly, written progress report
to the Assistant Deputy Comptroller and the Board, or its Executive Committee,
regarding the Bank’s efforts to meet the goals and objectives of the Action
Plan, and shall update the Action Plan as needed. Prior to making any changes
that will cause, result or bring about a significant deviation or material
change to the Action Plan adopted pursuant to this Article, the Board shall
submit the changes to the Assistant Deputy Comptroller for prior written
determination of no supervisory objection.

     (6) The Board shall ensure that the Bank has processes, personnel, and
control systems to ensure implementation of and adherence to the Action Plan
developed pursuant to this Article.

     (7) The Board shall ensure that any third party consultants, i.e., auditors
and/or attorneys, are subject to oversight and coordination by Bank management
and are subject to appropriate contractual arrangements and applicable OCC
guidance related to third-party relationships. The Bank shall ensure that all
third-party relationships have appropriate documentation to segregate expenses
between the Bank and its affiliates, including the Bank’s parent company.

ARTICLE II
BOOKS AND RECORDS

     This Article shall supplement Article II of the Consent Order as an
additional paragraph as follows:

     (1) The Bank shall take all steps necessary to ensure the maintenance and
availability to supervisory authorities of all records of the Bank and its
subsidiaries (including the books and records of Riggs International Banking
Corporation, Riggs Bank Europe Limited, Riggs &

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Company International, Limited, and Riggs Bank & Trust Company (Channel
Islands), Limited, in the possession, custody or control of the Bank).

ARTICLE III
CAPITAL PLAN AND DIVIDEND POLICY

     This Article shall replace Article IV of the Consent Order to read as
follows:

     (1) Within thirty (30) days, the Board shall cause the Bank to develop a
capital plan that includes:

  (a)   The Bank’s current and future capital requirements;     (b)  
Projections for growth and capital requirements based upon a detailed analysis
of the Bank’s risk profile and its assets, liabilities, earnings and off-balance
sheet activities; and     (c)   The sources and timing of additional capital to
meet the Bank’s current and future needs.

     (2) Upon completion, the Bank’s Capital Plan shall be submitted to the
Assistant Deputy Comptroller for his prior written determination of no
supervisory objection.

     (3) Upon receipt of a written determination of no supervisory objection,
the Bank shall immediately implement and thereafter ensure adherence to the
Capital Plan.

     (4) The Board shall review and update the Bank’s Capital Plan on a
quarterly basis, or more frequently if necessary. Copies of the reviews and
updates shall be submitted to the Assistant Deputy Comptroller. Prior to making
any changes that will cause, result or bring about a significant deviation or
material change to the Capital Plan, the Board shall submit the changes to the
Assistant Deputy Comptroller for prior written determination of no supervisory
objection.

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     (5) The Board shall ensure that the Bank has processes, personnel, and
control systems to ensure implementation of and adherence to the Capital Plan
developed pursuant to this Article.

     (6) The Bank shall declare and pay a dividend only:

  (a)   When the Bank is in compliance with its Capital Plan, following
supervisory non-objection of the Capital Plan and all changes to the Plan;    
(b)   When the Bank is in compliance with 12 U.S.C. §§ 56 and 60; and     (c)  
With the prior written determination of no supervisory objection from the
Assistant Deputy Comptroller.

ARTICLE IV
STRATEGIC PLAN

     This Article shall supplement the Consent Order as an additional Article,
as follows:

     (1) Within sixty (60) days, the Board shall cause the Bank to develop a
strategic plan that includes:

  (a)   A detailed analysis of the Bank’s current financial condition, strategic
goals, product lines, market demand, competition and economic conditions;    
(b)   Provisions for maintenance and growth of the Bank’s earnings, capital and
liquidity, consistent with the Capital and Contingency Plans required by this
Order; and     (c)   Strategies to address significant external risks, including
actions to be taken in response to varying contingencies that might affect the
Bank’s ability to implement its strategic goals.

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     (2) Upon completion, the Bank’s Strategic Plan shall be submitted to the
Assistant Deputy Comptroller for prior written determination of no supervisory
objection.

     (3) Upon receipt of a written determination of no supervisory objection,
the Bank shall immediately implement and thereafter ensure adherence to the
Strategic Plan. Prior to making any changes that will cause, result or bring
about a significant deviation or material change to the Strategic Plan adopted
pursuant to this Article, the Board shall submit the changes to the Assistant
Deputy Comptroller for prior written determination of no supervisory objection.

ARTICLE V
CONTINGENCY PLANNING

     This Article shall supplement the Consent Order as an additional article as
follows:

     (1) Within sixty (60) days, the Board shall cause the Bank to develop a
contingency plan to address the Bank’s current and future liquidity and funding
requirements (“Contingency Plan”). The Contingency Plan shall address, at a
minimum:

  (a)   The Bank’s current and future liquidity and funding requirements, under
various scenarios;     (b)   Projections of the sources and timing of additional
liquidity and funding to meet the Bank’s current and future needs, including the
resolution of issues relating to compliance, internal controls, risk management,
the Consent Order, and any actual or potential litigation on related matters;
and     (c)   The source(s) from which the Bank will seek to increase its
liquidity and funding to meet the Bank’s needs, including an analysis of the
volatility and availability of funding sources.

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     (2) Upon completion, the Bank’s Contingency Plan shall be submitted to the
Assistant Deputy Comptroller for prior written determination of no supervisory
objection.

     (3) Upon receipt of a written determination of no supervisory objection,
the Bank shall immediately implement and thereafter ensure adherence to the
Contingency Plan. Prior to making any changes that will cause, result or bring
about a significant deviation or material change to the Contingency Plan adopted
pursuant to this Article, the Board shall submit the changes to the Assistant
Deputy Comptroller for prior written determination of no supervisory objection.

ARTICLE VI
CLOSING

     (1) Although the Board is by this Modified Order required to submit certain
proposed actions and programs for the review or prior written determination of
no supervisory objection of the Assistant Deputy Comptroller, the Board has the
ultimate responsibility for proper and sound management of the Bank.

     (2) It is expressly and clearly understood that if, at any time, the
Comptroller deems it appropriate in fulfilling the responsibilities placed upon
her by the several laws of the United States of America to undertake any action
affecting the Bank, nothing in this Modified Order shall in any way inhibit,
estop, bar or otherwise prevent the Comptroller from so doing.

     (3) Any time limitations imposed by this Modified Order shall begin to run
from the effective date of this Modified Order. Any time limitations imposed by
the Consent Order shall remain in effect unless specifically amended by this
Modified Order. Any time limitations may be extended in writing by the Assistant
Deputy Comptroller for good cause upon written application by the Board.

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     (4) The provisions of this Modified Order are effective upon issuance of
this Modified Order by the Comptroller, through her authorized representative
whose hand appears below, and shall remain effective and enforceable, except to
the extent that, and until such time as, any provisions of this Modified Order
shall have been amended, suspended, waived, or terminated in writing by the
Comptroller; provided however, that the provisions of this Modified Order will
not be assumed by an entity which acquires all or substantially all of the
assets and liabilities of the Bank or to any successor in interest in a merger
or acquisition of the Bank..

     (5) In each instance in this Modified Order in which the Board is required
to ensure adherence to, and undertake to perform certain obligations of the
Bank, it is intended to mean that the Board shall:

  (a)   Authorize and adopt such actions on behalf of the Bank as may be
necessary for the Bank to perform its obligations and undertakings under the
terms of this Modified Order;     (b)   Require the timely reporting by Bank
management of such actions directed by the Board to be taken under the terms of
this Modified Order;     (c)   Follow-up on any non-compliance with such actions
in a timely and appropriate manner; and     (d)   Require corrective action be
taken in a timely manner of any non-compliance with such actions.

     (6) In the event of an inconsistency between this Modified Order, the
Consent Order or the Consent Order dated July 16, 2003, the terms of this
Modified Order shall control.

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     (7) This Modified Order is intended to be, and shall be construed to be, a
final order issued pursuant to 12 U.S.C. § 1818(b), and expressly does not form,
and may not be construed to form, a contract binding on the Comptroller or the
United States.

     (8) The terms of this Modified Order, including this paragraph, are not
subject to amendment or modification by any extraneous expression, prior
agreements or prior arrangements between the parties, whether oral or written.

IT IS SO ORDERED, this 27th day of January, 2005.

     
/s/ Timothy W. Long
  1/27/05

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Timothy W. Long
  Date
Senior Deputy Comptroller
   

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UNITED STATES OF AMERICA
DEPARTMENT OF THE TREASURY
OFFICE OF THE COMPTROLLER OF THE CURRENCY

     

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In the Matter of:
  ) 

  ) 
Riggs Bank N.A.
  ) 
McLean, Virginia
  ) 

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STIPULATION AND CONSENT TO THE ISSUANCE
OF MODIFICATION OF EXISTING CONSENT ORDER

     The Comptroller of the Currency of the United States of America
(“Comptroller”) has initiated proceedings against Riggs Bank N.A., McLean,
Virginia (“Bank”) pursuant to 12 U.S.C. § 1818(b).

     The Bank, in the interest of compliance and cooperation, consented to the
issuance of a Consent Order, dated May 13, 2004 (“Consent Order”);

     In consideration of the above premises, the Comptroller, through his
authorized representative, and the Bank, through its duly elected and acting
Board of Directors, hereby stipulate and agree to the following:

ARTICLE I
JURISDICTION

     (1) The Bank is a national banking association chartered and examined by
the Comptroller pursuant to the National Bank Act of 1864, as amended, 12 U.S.C.
§ 1 et seq.

     (2) The Comptroller is “the appropriate Federal banking agency” regarding
the Bank pursuant to 12 U.S.C. §§ 1813(q) and 1818(b).

     (3) The Bank is an “insured depository institution” within the meaning of
12 U.S.C. § 1818(b)(1).

 

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ARTICLE II
AGREEMENT

     (1) The Bank hereby consents and agrees to the issuance of the Modification
of the Existing Consent Order by the Comptroller (“Modified Order”).

     (2) The Bank further agrees that said Modified Order shall be deemed an
“order issued with the consent of the depository institution” as defined in 12
U.S.C. § 1818(h)(2), and consents and agrees that said Modified Order shall
become effective upon its issuance and shall be fully enforceable by the
Comptroller under the provisions of 12 U.S.C. § 1818(i). Notwithstanding the
absence of mutuality of obligation, or of consideration, or of a contract, the
Comptroller may enforce any of the commitments or obligations herein undertaken
by the Bank under its supervisory powers, including 12 U.S.C. § 1818(i), and not
as a matter of contract law. The Bank expressly acknowledges that neither the
Bank nor the Comptroller has any intention to enter into a contract.

     (3) The Bank also expressly acknowledges that no officer or employee of the
Office of the Comptroller of the Currency has statutory or other authority to
bind the United States, the U.S. Treasury Department, the Comptroller, or any
other federal bank regulatory agency or entity, or any officer or employee of
any of those entities to a contract affecting the Comptroller’s exercise of its
supervisory responsibilities.

ARTICLE III
WAIVERS

     (1) The Bank, by signing this Stipulation and Consent, hereby waives:

  (a)   The issuance of a Notice of Charges pursuant to 12 U.S.C. § 1818(b);

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  (b)   Any and all procedural rights available in connection with the issuance
of the Modified Order;     (c)   All rights to seek any type of administrative
or judicial review of the Modified Order; and     (d)   Any and all rights to
challenge or contest the validity of the Modified Order.

ARTICLE IV
OTHER ACTION

     (1) The Bank agrees that the provisions of this Stipulation and Consent
shall not inhibit, estop, bar, or otherwise prevent the Comptroller from taking
any other action affecting the Bank if, at any time, he deems it appropriate to
do so to fulfill the responsibilities placed upon her by the several laws of the
United States of America.

     IN TESTIMONY WHEREOF, the undersigned, authorized by the Comptroller as her
representative, has hereunto set his hand on behalf of the Comptroller.

     
/s/ Timothy W. Long
  1/27/05

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Timothy W. Long
  Date
Senior Deputy Comptroller
   

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     IN TESTIMONY WHEREOF, the undersigned, as the duly elected and acting Board
of Directors of the Bank, have hereunto set their hands on behalf of the Bank.

     
/s/ Robert L. Allbritton
  1/27/05

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Robert L. Allbritton
  Date
 
   
/s/ Nathan D. Baxter
  1/27/05

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Nathan D. Baxter
  Date
 
   
/s/ Jacqueline C. Duchange
  1/27/05

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Jacqueline C. Duchange
  Date
 
   
/s/ Thomas F. Fitzgerald
  1/27/05

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Thomas F. Fitzgerald
  Date
 
   
/s/ Heather S. Foley
  1/27/05

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Heather S. Foley
  Date
 
   
/s/ Lawrence I. Hebert
  1/27/05

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Lawrence I. Hebert
  Date
 
   
/s/ Frederick J. Ryan, Jr.
  1/27/05

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Frederick J. Ryan, Jr.
  Date
 
   
/s/ John A. Sargent
  1/27/05

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John A. Sargent
  Date
 
   
/s/ Stephen J. Trachtenberg
  1/27/05

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Stephen J. Trachtenberg
  Date
 
   
/s/ Stuart Yarbrough
  1/27/05

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Stuart Yarbrough
  Date

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