FDIC sues former TierOne Bank officials
LINCOLN, Neb. (AP) _ Eight former TierOne Bank officials are being sued by the Federal Deposit Insurance Corp. because regulators say the board members and executives improperly approved risky loans in Las Vegas that contributed to the bank's failure.
The Lincoln Journal Star reports the FDIC says more than three-quarters of $200 million of loans in Las Vegas the board reviewed went bad.
TierOne failed in 2010 after concealing the extent of its real estate losses. Its assets were sold to Great Western Bank.
Attorney Gregory Scaglione, who represents former CEO Gil Lundstrom and another executive, says the former bank officials shouldn't be held personally responsible for these loans because regulators and shareholders approved TierOne's plan to start lending in new markets like Las Vegas and Florida.
© 2014 Rural Radio Network. All rights reserved. Republishing, rebroadcasting, rewriting, redistributing prohibited. Copyright Information