Bert Lance, the former budget director, will be questioned next Tuesday by the Securities and Exchange Commission, about his role in an alleged attempt to take over Washington-based Financial General Bankshares Inc.
On Wednesday, Lance will be interviewed by lawyers for Financial General.
The $2.2 billion bank holding company filed suit last week alleging that Lance, among other defendants, "secretly" acquired approximately 20 percent of Financial General's shares.
The SEC is interviewing Lance and other defendants to learn if any federal securities laws were violated, as alleged in the Financial General suit.
Meanwhile, Financial General's board of directors yesterday voted to change the holding company's name to First American Bankshares Inc. The board nominated a new slate of directors that included no representatives of the stockholders said to be involved in the takeover attempt.
Lance's appointment with the SEC was revealed yesterday during a hearing at U.S. District Court here. Lance had been scheduled to be interviewed under oath by company attorneys today, but his attorney, Robert Altman, asked for an extension because his client was traveling in California and could not be reached.
An attorney for the bank argued that Lance was ignoring the court-authorized interview date. "This gentleman is playing fast and loose with the authority of this court," he said.
U.S. District Court Judge Oliver Gasch, however, granted a five-day extension before Lance must give the company a sworn statement on his role in the purported takeover.
At Financial General's board meeting, directors voted to adopt the name First American Bankshares "as a further step in developing a single identity for the holding company and its principal banks in the Virginia, District of Columbia and Maryland marketing area."
The name First American first will appear on the new bank to be created by the merger next month of Alexandria National Bank, Arlington Trust Co., and Clarendon Bank and Trust, the company's three banks in Northern Virginia.
The new name -- expected to be applied later to other Financial General banks -- must be approved by stockholders at the company's annual meeting on April 26.
In preparation for that meeting, the board yesterday voted to trim its size from 23 members to 17, eliminating seats that had been held by several members who resigned or sold their stock in connection with the takeover attempt.
Nominated for the board were 16 present Financial General board members and Eugene S. Casey, the son of board member Eugene Casey, who is the second largest stockholder of the company.
Election of management's nominees would mean no respresentation on the board by the as yet unnamed investors who reportedly have acquired nearly 20 percent of the company's stock in an apparent attempt to gain control.
At the meeting, President J. William Middendorf said the company had record fourth-quarter income of $2.982 million (48 cents a share), up from $2.164 million (35 cents) for the same period a year ago.
Taking routine action on dividends, the board declared a 10-cent dividend on common and class A common stock, and the regular quarterly dividend of 56 1/4 cents a share on preferred stock, all payable May 1 to shareholders as of March 13.