FDIC Fines Ex-CEO Of NJ Bank For Loan Violations

Law360, Philadelphia (February 4, 2014, 6:19 PM EST) -- The Federal Deposit Insurance Corp. announced Friday that it is seeking to fine the former head of a failed New Jersey bank $75,000 for receiving prohibited loans to defend himself in a lawsuit, which led to a significant loss for the bank.

The FDIC said in a December filing that it determined that Joseph Natale, the former chairman and CEO of First State Bank, had breached his fiduciary duty by accepting two lines of credit totaling $750,000.

“[Natale] breached his duty to the Bank by, among...
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