Nebraska Bank CEO Convicted for Masking Huge Loan Losses

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Nebraska Bank CEO Convicted for Masking Huge Loan Losses

Nebraska Bank CEO Convicted for Masking Huge Loan Losses

Guess Eric Holder’s firm’s many tentacles never represented this one… THIS could apply to every large bank CEO – and why hasn’t been applied/tried


National Mortgage News-

The former chief executive of a Nebraska bank was convicted Friday by a federal jury for lying to investors and regulators about considerable losses tied to risky commercial real estate investments.

Gilbert Lundstrom, 74, led TierOne Bank to make hazardous investments, including construction projects in Las Vegas, resulting in loan and property valuation losses of more than $100 million in the aftermath of the financial crisis, according to a Justice Department announcement.

Then Lundstrom and other executives at the $3 billion publicly traded company concealed the losses to investors for more than a year, according to authorities. They did not disclose in financial statements that the Lincoln, Neb., bank needed $34 million to $114 million in additional reserves and loan loss allowance after finding out about the requirement in April 2009. And in a May 2009 annual shareholder meeting, Lundstrom did not clearly reveal the state of the bank’s capital ratios and reserves to investors, nor that it had asked for Troubled Asset Relief Program assistance, regulators contend.

 [NATIONAL MORTGAGE NEWS]

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