The former head of the Martha’s Vineyard Savings Bank who left last year under circumstances that were never fully explained, has been permanently barred from banking by the Federal Deposit Insurance Corporation.
An “order of prohibition from further participation” was issued against Christopher Wells by the FDIC.
The order was issued in late February and publicly released by the FDIC last week. Mr. Wells signed a consent agreement with the FDIC in which he does not admit the claims against him.
But the order claims among other things that Mr. Wells “engaged or participated in violations of law and/or regulations, unsafe or unsound banking practices, and/or breaches of fiduciary duty as an institution-affiliated party of Martha’s Vineyard Savings Bank.” The order also says: “. . . the bank has suffered or will probably suffer financial loss or other damage, the interests of the bank’s depositors have been or could be prejudiced and/or (Wells) received financial gain or other benefit.”
Paul Falvey, who took the helm as chief executive officer at the savings bank six months ago, said Sunday he could not comment directly on the FDIC order, but he did say the financial position of the bank without question remains strong.
“The bank is in terrific financial shape,” Mr. Falvey said. “There are 152 banks in Massachusetts and we are in the top 30 among our peers in terms of capital and earnings.”
Mr. Wells, who was president and chief executive officer at the bank, resigned abruptly in May 2012. He had been at the helm of the bank since 2004 and had presided over a period of growth and prosperity at the bank. The bank merged with the Martha’s Vineyard Cooperative Bank in 2007 under Mr. Wells’s leadership to become the largest banking institution on the Island. The bank also operates a trust investment division as an affiliate.
Mr. Wells’s departure sparked a period of change and internal turmoil at the bank. The Gazette learned later that the bank was under investigation the FDIC and had received a letter from federal regulators in June 2012 that had flagged the bank for administrative deficiencies and also cited the board of trustees for poor leadership and oversight. In an interview with the Gazette last fall, bank leaders acknowledged the problems and that they had led to Mr. Wells’s resignation, although they could only describe them in the broadest terms because they were bound by rules of confidentiality.
“Through discussions with regulators we learned about credit matters where maybe the Is were not dotted or the Ts crossed and Chris decided that the best thing for him and the bank was to resign,” board chairman Philip J. Norton Jr. told the Gazette at the time.
In October Mr. Falvey, a Hingham banker with long experience in community banking, including working with federal regulators, was hired for the top post at the bank.
Total assets at the bank were $520 million at the end of last summer, with another $180 million in assets in the trust division.
Net earnings at the bank declined from $4.6 million in 2011 to $3.9 million in 2012, but Mr. Falvey said that follows a trend seen in banks across the country. “Our earnings continue to be strong and our chargeoff ratios on bad loans are very modest," he said.

Comments
This sounds just like Wall St
robert chilmarkThis sounds just like Wall St. but on a much smaller scale. The banksters don't have to 'admit to any wrongdoing', and generally get a wrist slap. Meanwhile the depositors who put their money at risk are left (permanently) on the sidelines scratching their heads wondering what happened. So what di he actually do?? Invest the depositors money in credit default swaps, Greek bonds, lap dancers...? Why the secrecy. I have my money in that bank. Don't I deserve an explanation so I can make an informed decision as to whether or not I want to close my account?
Definitely! This oh it was
Dave EdgartownDefinitely! This oh it was nothing doesn't make sense.
The people have a right to
the peopleThe people have a right to know stop the cover up bs
If I were to be caught
will monast west tisburyIf I were to be caught stealing the particulars of what I'd done would be public record but Mr. Wells is a banker and is accorded a different standard. We haven't learned a thing. Money rules.
I think, as an account holder
Annie Bradshaw Vineyard HavenI think, as an account holder with MV Savings, they should be fully transparent. If they choose not to, then maybe it's time to seek out another island bank
Top 20% in the state
John EdgartownTop 20% in the state,incredible growth and prosperity....says enough to me. Chris is a great leader,personable,intelligent,and had the human touch which is unusual in the over regulated banking industry today. Unfortunately for him, those strengths turned out to be his downfall as he was not supported in his own workplace.
This never would have
David EdgartownThis never would have happened when Ed Mayhew was president. That man has class! Bring him back!
Bring Back Ed Mayhew!!!
Tom West TisburyBring Back Ed Mayhew!!!
John, the fdic doesn't ban
concerned tisburyJohn, the fdic doesn't ban someone cuz " they r not supported" they ban because of wrong doing. I don't see how this bank is considered "best of the Vineyard" I recently tried to contact their senior lender Brad Egan and they said he don't work there anymore either. Another hidden story?
The FDIC doe not ban someone
honest Ab TisburyThe FDIC doe not ban someone from banking because he was honest or because his staff didn't support him. As far as "the human touch"well he spent a lot of time with young female staff members, so I would agree with that statement. The bank is not the best of the Vineyard!
I agree that what "wrongdoing
ChiliJ Martha's VineyardI agree that what "wrongdoing" has been done should become public, perhaps after a fully completed investigation to eliminate a lot of supposition by the public. This bank has gone through a lot of stuff as I have witnessed through the eyes of one of it's employees. It's amazing how screwed up they were. I think it gives the public an opportunity to realize that these trusted institutions are far from perfect.
I dont know how any of these
Ken EdgartownI dont know how any of these banks make money. Because of QE 1,2,and 3 interest rates are so low. My variable rate based on Fed index hasnt been over 4 per cent. It hasnt gone under 4 per cent because MV co-op has a low limit of 4 per cent written into my mortgage. These guys have to find other ways to make money because of Government interference in the loan business. I wonder what this guy was into.
Chris wells was a true
Mary EdgartownChris wells was a true professional. He helped me and my family numerous times - always made time for us and our business needs. I refuse to believe there has been any wrongdoing. I wish him all the best.
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