September 30, 2005

State Banking Commissioner John P. Burke today declared that the financial condition of Circle Trust Company (“CTC”), headquartered in Darien, Connecticut was such that it would be unsafe and unsound for it to continue operations.  A petition was filed at the Superior Court for the Judicial District of Hartford County to name Commissioner Burke as Receiver of the Circle Trust Company as outlined under Chapter 664c of the Connecticut General Statutes.

The company will continue normal business operations once it enters into regulatory receivership. The Banking Commissioner, in his capacity as the receiver of CTC, has maintained a sufficient operating staff at CTC and customers may call CTC directly to inquire about their accounts.

Commissioner Burke stated the action taken today was necessary due to the fact that Circle Trust’s capital had fallen below the minimum threshold as required by the Connecticut law.  The minimum amount to operate a trust bank is $2,000,000. 

According to Commissioner Burke, the trust bank had been under increased regulatory scrutiny since 2003, and despite great efforts to recapitalize, its financial condition has continued to erode.

Circle Trust Company is the former Columbus Circle Trust Company, founded in 1995, based in Stamford, Connecticut.  It began use of the Circle Trust Company name in 1999 and relocated its office to Darien in 2005.  CTC also has an office located in Rutland, Vermont.  CTC is not a deposit bank but a trust company providing trust and custodial services to banks and third party administrators, not-for-profits and high net worth individuals.

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