From the filing:
"the Director Defendants permitted a lax loan approval process"
"regulators repeatedly warned Cooperative’s management and Board about the risks associated with its high concentration in speculative loans and weaknesses in its lending function."
"loans were made with little or no hard borrower equity required"
"The Defendants recklessly failed to ensure that Cooperative identified, measured, monitored and controlled the risk associated with its rapid growth. The Bank’s growth was fueled by its risky and uncontrolled increase in residential development and commercial real estate (“CRE”) loans".
How corrupt must they be for the government to notice.
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