---

On June 18, 2007, pursuant to Section 36a-412(a)(1) of the Connecticut General Statutes, as amended by Public Act 07-14, and Section 36a-125 of the Connecticut General Statutes, Citizens Bank, National Association, a national banking association with its main office in Albany, New York, filed an application for the merger of Citizens Bank of Connecticut, a Connecticut bank, and RBS National Bank, a national banking association with its principal place of business in Bridgeport, Connecticut, with and into Citizens Bank, National Association.  In connection with the application, Citizens Bank, National Association filed a community reinvestment plan which is available for public inspection and comment at the Department of Banking for a period of 30 days.

On June 18, 2007, pursuant to Section 36a-70 of the Connecticut General Statutes, a temporary certificate of authority was issued to the organizers of Harbor Bank & Trust, Fairfield, for the establishment of a Connecticut bank & trust company.

On June 15, 2007, the Commissioner entered an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Bayou Technologies, Inc. and Steven O. Canady, both of 1170 Peachtree Street, Suite 1200, Atlanta, Georgia.   The action alleged that, between 2003 and 2005, respondent Bayou Technologies, Inc., through respondent Canady, sold unregistered shares of its common stock to Connecticut investors in violation of Section 36b-16 of the Connecticut Uniform Securities Act.  The action also alleged that, in contravention of Section 36b-6 of the Act, respondent Bayou Technologies, Inc. employed respondent Canady as an unregistered agent of issuer, and that respondent Canady transacted business in such capacity.  The respondents were afforded an opportunity to request a hearing on the Order to Cease and Desist.  A hearing on the Notice of Intent to Fine has been scheduled for August 8, 2007.

On June 22, 2007, the Commissioner entered a Consent Order with respect to Southern Connecticut Financial Services, Inc., a Connecticut-licensed first and secondary mortgage lender located at 935 White Plains Road, Trumbull, Connecticut.  Also named were company officers David Kasowitz and Monte S. Klein.  The Consent Order alleged that from approximately 1999 to 2006, Southern Connecticut Financial Services, Inc., through Kasowitz and Klein, offered and sold over $12.3 million in promissory notes at a time when such notes were not registered under the Connecticut Uniform Securities Act.  Southern Connecticut Financial Services, Inc., Kasowitz and Klein represented to the Commissioner that the proceeds from the note sales were used to fund the making of mortgage loans by the company.  The Consent Order directed Southern Connecticut Financial Services, Inc. to 1) extend a written rescission offer of approximately $10.5 million to those note investors whose principal had not been repaid; 2) restrict future securities sales to offerees or purchasers qualifying as “accredited investors” within the meaning of Section 501(a) of Regulation D under the Securities Act of 1933; and 3) remit $30,000 to the department.  Of that amount $25,000 constituted an administrative fine and $5,000 represented reimbursement for investigative costs.  The Consent Order also directed Southern Connecticut Financial Services, Inc., David Kasowitz and Monte Klein to cease and desist from regulatory violations.

       Howard F. Pitkin

       Banking Commissioner