Tag: Prompt Corrective Action

  • Material Loss Reviews: Does responsibility = liability?

    I asked in my previous post whether or not the regulators should share any of the blame when institutions fail, and if so, should they shoulder any of the liability?  The thought occurred to me as I was reviewing some recent Material Loss Reviews. A Material Loss Review (MLR)  is a post-mortum written by the…

  • FDIC Sues Bank Directors (again)

    On June 19, 2009 Cooperative Bank in Wilmington, NC was closed by the North Carolina Commissioner of Banks and the FDIC.  Federal banking regulators are now suing Cooperative Bank’s chairman and eight members of the board of directors for more than $145 million for negligence and breaches of fiduciary duty.  One of the FDIC’s assertions…