Witness: TierOne Bank CEO knew of bad loans; they were written on a napkin

[Omaha Steve]

http://www.omaha.com/money/witness-tierone-bank-ceo-knew-of-bad-loans-they-were/article_5a426caa-7d97-11e5-be8d-735d5bdbfc1d.html


POSTED: WEDNESDAY, OCTOBER 28, 2015 12:14 PM | UPDATED: 4:34 PM, WED OCT 28, 2015.
By Russell Hubbard / World-Herald Bureau

LINCOLN — The government's second star witness in the TierOne Bank fraud trial Wednesday said ex-Chief Executive Gil Lundstrom not only knew the bank's loan portfolio was plagued with delinquent debt, he knew tens of millions in losses were being hidden from investors and regulators.

Former TierOne Chief Credit Officer Don Langford – who has pleaded guilty in the case and agreed to testify against his former boss in return for the prospect of a lenient sentence – testified that Lundstrom was present at a meeting in 2008 at the bank's Lincoln headquarters where the ex-CEO asked for a tally.

Langford said the numbers were added up by other high-ranking executives and written on a napkin. It came to somewhere around $60 million or $70 million in hidden loan losses that had not been disclosed at that point to either stockholders or regulators.

"He had no reaction," Langford said under questioning by U.S. Prosecutor Rush Atkinson.

FULL story at link.

[SharonAnn]

1. Hire a new CEO, move the HQ to where he lives. Seen that happen often.