"[Judge Edmund] Reggie was an owner of City Savings Bank
with Shreveport businessman Herman Beebe when the younger Reggie was president."
DeRidder Bank and Its Ex-President Settle Case
New Orleans, LA January 3, 1991
City Savings Bank and Trust Co. of DeRidder, La., has reached an out-of-court settlement with Edmund Michael Reggie Jr., its former president, and an insurance company in a dispute involving $6 million in losses from eight loans.
A trial in the 4 1/2 -year-old case was scheduled for Wednesday in Orleans Civil District Court, but the parties settled last Friday.
However, both parties agreed not to disclose details, said City Savings Bank attorney Victor L. Roy of Baton Rouge.
"It was a substantial payment to the bank, and all I can say is that my client is smiling," Roy said.
Reggie, a New Orleans resident, was president of City Savings from August 1980 until he resigned as a member of the board of directors in March 1982. The loans were made during that period.
During that time, American Casualty Co. of Reading, Pa., formerly CNA Insurance Companies, insured the bank's officers and directors in liability cases.
The suit filed in May 1986 accused Reggie of not discharging his fiduciary duties in good faith, diligence and judgment.
On June 30, 1990, the $51 million-asset City Savings had primary capital of 7.09 percent of assets and non-performing loans of only 0.97 percent of assets. But its midyear return on average assets was a negative 0.23 percent.
Reggie is the son of Edmund M. Reggie of Crowley, La.
The elder Reggie was an owner of City Savings Bank with Shreveport businessman Herman Beebe when the younger Reggie was president.
Reggie Sr. is a close confidant of former Gov. Edwin W. Edwards and a friend of the Kennedy family of Massachusetts. He is facing federal criminal charges of bank bribery and bank fraud with four other men.
Copyright 1991, The Times-Picayune Publishing Corp.
From: The Times-Picayune, New Orleans, January 3, 1991. Section: MONEY, Page: C-14. Reprinted in accordance with the "fair use" provision of Title 17 U.S.C. § 107 for a non-profit educational purpose.