Lawsuit Fears Push Up Costs for Risky Banks
On Nov. 1, the Federal Deposit Insurance Corp. sued 11 former officers and board members of Heritage Community Bank, a Glenwood (Ill.) lender closed by state regulators last year. The complaint alleges that the bank’s leaders ignored losses on risky commercial real estate loans while paying out millions of dollars in dividends and bonuses. The lawsuit, seeking at least $20 million, foreshadows a …
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