Notes
1.Does the supervisory agency have the right to meet with external auditors to discuss their report without the approval of the bank? 2.Are auditors required by law to communicate directly to the supervisory agency any presumed involvement of bank directors or senior managers in elicit activities, fraud, or insider abuse? 3.Can supervisors take legal action against external auditors for negligence? 4.Can the supervisory authority force a bank to change its internal organizational structure? 5.Are off-balance sheet items disclosed to supervisors? 6. Can the supervisory agency order the bank's directors or management to constitute provisions to cover actual or potential losses? 7. Can the supervisory agency suspend the directors' decision to distribute: a) Dividends? b) Bonuses? c) Management fees? 8.Can the supervisory agency legally declare-such that this declaration supersedes the rights of bank shareholders-that a bank is insolvent? 9.Does the Banking Law give authority to the supervisory agency to intervene that is, suspend some or all ownership rights-a problem bank? 10.Regarding bank restructuring and reorganization, can the supervisory agency or any other government agency do the following: a) Supersede shareholder rights? b) Remove and replace management? c) Remove and replace directors?