I found this comment on the Herald Journal’s website in relation to the recent reprimand given by the Fed to Cache Valley Bank:
I site the Goose and Gander case because it is relevant to the case at hand. You recall in this case it was found that what was indeed “good” for the Goose was also “good” for the Gander . We have the business interest of a high ranking government official under the microscope here. After reading this article, I went to Google to find more. (Now remember, the information I read was only as good as the source.) I read in the article that Mr. Daines was legal counsel for Cache Valley Bank, and yet….there was no mention that he is actually a founder and owner of the bank? Where was this information? This is a high ranking public official. I read the court document that referenced that this also stemmed from 2004, but I find no information that the HJ news wrote and article about it. Are we to assume that because of the high political and public profile of an individual(s) it was kept out of the newspaper? I was also told that Cache Valley Bank is the bank where the Cache County funds are kept. This is disturbing because this sounds like it would also be a conflict of interest because of the position held by Mr. Daines as Cache County Prosecutor. I think it is absolutely necessary to monitor this bank as well as any others that hold government money deposits. This smells of impropriety. In my line of work, I cannot work for anyone of a close association and business interest, etc. without FULL disclosure and documentation. The fact that Mr. Daines owns the bank where his “employer” keeps its assets should be public knowledge to help identify any potential conflicts of interest. I am most disturbed that it was possible that the HJ News was intimidated into keeping the 2004 incident out of the paper therefore offering preferential treatment to a public official. If this information is wrong, I would like to see a follow-up response from the HJ News so that I may read the missing account. It would be informative to know for sure whether Cache Valley Bank holds all or only part of the Cache Valley funds. This doesn’t sit well with me and I imagine many others. No person, regardless of position or status is above the law or beneath the “press”. Please keep information “above the radar”. Report it factually and let us be our own judge of what is important and what is not.
I called the County Auditor’s office to ask where the County did their banking. The person who answered the phone quickly asked, “Well, who wants to know?”. I was a little surprised by that response. I told them who I was and they transferred me to Karen Jeppesen, the County Treasurer.
According to my conversation with Jeppesen, Cache County keeps its reserves, which constitutes most of it’s money, in the State treasurers investment pool in Salt Lake. The County has two checking accounts, one at Cache Valley Bank and one at Zions Bank.
So, yes, some, but not all or even most of Cache County’s money is in Cache Valley Bank. According to this and other documents, Cache County Attorney George Daines is the Chairman of the Board of Cache Valley Bank. According to Cache Valley Bank’s website, the Bank is now owned by two families.
Reports in the Salt Lake Tribune today indicate those two families are the Daines and the Becksteads:
The Cache Valley Board is made up of, in part, retired farmer Linden Beckstead and his son, real estate agent Scott Beckstead, as well as three members of the Daines family – retired physician Newel Daines, Cache County attorney George Daines and physician Peter Daines. George Daines is bank chairman.
Bank CEO Miller also is a member of the board. Only two of the board members – Dean Marriott and Clifford Skousen – have no stake in the company, Miller said. Neither could immediately be reached for comment. Other board members also did not immediately return calls. One, Scott Beckstead, declined comment when contacted.
There is no evidence that any unethical or untoward behavior has occurred as a result of Cache County holding a checking account at a bank in which the County Attorney has ownership. However, there does appear to be the potential for a possible conflict of interest. Cache County should consider closing their checking account at Cache Valley Bank for at least the remainder of the time that George Daines is in office.