Risky Loans Cost Calif. Bank $42M, Led To Demise: FDIC

Law360, New York (January 30, 2012, 4:45 PM EST) -- The Federal Deposit Insurance Corp. sued the former officers of California-based County Bank in federal court Friday, claiming they authorized risky and ill-advised commercial real estate loans that cost the bank more than $42 million and led to its 2009 failure.

County Bank's former CEO Thomas T. Hawker, chief operating officer and president Edward J. Rocha, and vice presidents John J. Incandela, Dave Kraechan and Edwin Jay Lee repeatedly disregarded the bank's credit policies and approved loans to borrowers who weren't creditworthy, or for projects that...
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