SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 19, 1996
SIGNET BANKING CORPORATION
(Exact name of registrant as specified in its charter)
Virginia 1-6505 54-6037910
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
7 North Eighth Street, Richmond, Virginia 23219
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 804 747-2000
Not Applicable
Former name, former address and former fiscal year, if changed since last report
<PAGE>
ITEM 5. Other Events.
On March 19, 1996, Signet Banking Corporation ("Signet") announced
that it was the victim of fraudulent commercial loan transactions amounting
to approximately $81 million. See Exhibit 1 for the News Release dated
March 19, 1996. On March 20, 1996, Signet stated that, based on
information provided by federal authorities, it now believes that there
will be substantial recoveries from the apparently fraudulent loan
transactions announced March 19, 1996. See Exhibit 2 for the News Release
dated March 20, 1996.
ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits.
1. News release dated March 19, 1996.
2. News release dated March 20, 1996.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
SIGNET BANKING CORPORATION
(Registrant)
Date: March 22, 1996 /s/ W. H. Catlett, Jr.
W. H. Catlett, Jr.
Executive Vice President and Controller
(Chief Accounting Officer)
EXHIBIT 1
Signet Banking Corporation
PO Box 25970
Richmond VA 23250
804 771 7210
N E W S R E L E A S E
Release Date March 19, 1996 Contact Teri Schrettenbrunner S I G N E T
Director, Public Relations
(804) 771-7210
Signet Discloses Potential Fraud
RICHMOND, Va. -- Signet Banking Corporation announced today that it is
the apparent victim of fraudulent commercial loan transactions amounting to
$81 million. The transactions are structured as loans to finance computer
equipment leases in which the purported lessee is a Fortune 100
corporation, well known to Signet.
Payments under the leases were assigned to Signet. It is now believed
that the documents obligating the lessee were forged. Individuals claiming
to be employees of the lessee were arrested today by Federal authorities.
At this time, all payments are current, but Signet is assessing the
potential for loss under its $81 million exposure.
Signet has sold or assigned without recourse to other financial
institutions participations in similar transactions with the same parties,
totaling approximately $173 million.
The purported lessee is conducting its own independent investigation,
and Signet is cooperating with Federal authorities in their investigation.
Signet Banking Corporation is an $11 billion financial institution
with headquarters in Richmond, Virginia. The company offers a wide array of
financial services through its Capital Markets, Commercial and Consumer
Banking businesses. Signet has offices in Virginia, Maryland and the
District of Columbia, and markets several of its products nationally.
Listed on New York Stock Exchange-Symbol SBK
EXHIBIT 2
Signet Banking Corporation
PO Box 25970
Richmond VA 23250
804 771 7210
N E W S R E L E A S E
Release Date March 20, 1996 Contact Teri Schrettenbrunner S I G N E T
Director, Public Relations
(804) 771-7210
Signet Expects Substantial Recoveries
from Fraudulent Loans
RICHMOND, Va. -- Signet Banking Corporation stated today that, based
on information provided by federal authorities, it now believes that there
will be substantial recoveries from the apparently fraudulent loan
transactions announced yesterday. Aggressive steps are being taken by
federal authorities to attach these assets for the benefit of the
creditors.
Signet continues to cooperate with the federal authorities in its
attempt to maximize these recoveries and to assure that the individuals
guilty of wrongdoing are prosecuted.
Signet Banking Corporation is an $11 billion financial institution
with headquarters in Richmond, Virginia. The company offers a wide array of
financial services through its Capital Markets, Commercial and Consumer
Banking businesses. Signet has offices in Virginia, Maryland and the
District of Columbia, and markets several of its products nationally.
Listed on New York Stock Exchange-Symbol SBK