FDIC takes action against Concord Bank - ordering it to stop “unsound” banking practices

[The Straight Story]

FDIC takes action against Concord Bank

The Federal Deposit Insurance Corp. filed a cease-and-desist order against Concord Bank in St. Louis, ordering it to stop “unsound” banking practices and bring in new management.

In the order, which was dated Feb. 13 but made public Friday, the FDIC accused the bank of engaging in hazardous lending and lax collection practices and operating with management whose policies and practices were “detrimental” to the bank and jeopardized the safety of its deposits, and with a board that failed to provide adequate supervision.

The FDIC ordered the bank to stop operating with an “inadequate” allowance for loans and lease losses for the kind of loans it holds, and ordered the bank to create capital, profit and business plans.

Concord Bank must get permission to give bonuses and raises to senior executives, the FDIC said in the order, which was signed by Mark Moylan, deputy regional director for the FDIC’s Kansas City regional office.

The bank has already taken steps to improve its operations.

http://www.bizjournals.com/stlouis/stories/2009/03/23/daily80.html

Now if they were a really big bank we would send them money instead :)

[Rabrrrrrr]

1. Your last line is what I was thinking - screw up a few million, you get pounded and threat of firing

Screw up billions or trillions, and you get a bonus and the government kissing your ass so you will stay on as CEO, even though you are clearly utterly incompetent and/or totally criminal.

This is fucking insane.