Failed Bank Claims Regulators Forced It To Distort Books

Law360, New York (March 12, 2012, 1:42 PM EDT) -- Charter National Bank and Trust on Friday sued the federal bank regulators that shut it down last month, claiming they forced it to book erroneous accounting entries regarding its real estate holdings that made it appear the suburban Chicago bank was critically undercapitalized.

The complaint, lodged in Illinois federal court, claims the Office of the Comptroller of the Currency coerced Charter National into taking unwarranted write-downs of the value of its real estate assets, which scared off potential investors that could have helped the bank recapitalize....
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