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Fed bank regulators: "gross negligence & reckless conduct"

What an ironic job for the banker to enter, helping wealthy people manage the risk associated with investing. He has personally been fined $33 million by Federal authorities and the rest of his board at the bank has been fined massive amounts as well totaling roughly $150 million. That's a lot of wealth management fees that need to be made! The FDIC complaint against Cooperative bank's alleges that the defendants “failed to manage the inherent risks associated with their aggressive growth strategy” and “permitted a lax loan approval process.” The complaint further alleges that through out the period 2005 through the bank’s failure, state and federal regulators “repeatedly warned” the bank’s management and board “about the risks associated with its high concentrations in speculative loans and weaknesses in lending functions,” yet the bank’s board “permitted and approved” the bank’s continued lending practices. The FDIC alleges that the defendants’ negligence, gross negligence and reckless conduct “ultimately led to the bank’s failure.”
http://wilmingtonbiz.com/industry_news_details.php?id=2776

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