Ex-TierOne Bank officials settle with FDIC

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Posted: Thursday, March 20, 2014 12:00 am

LINCOLN (AP) — Federal regulators have settled a lawsuit filed against former officials of the failed TierOne Bank officials for $6.5 million.

The Lincoln Journal Star reported that the Federal Deposit Insurance Corp. filed the lawsuit last June against eight former executives and board members. The FDIC said the eight improperly approved risky loans in Las Vegas that contributed to the bank’s failure.

TierOne failed in 2010, and the Lincoln-based bank’s assets were sold to Great Western Bank.

The FDIC said the bank extended the terms of its bad loans in ways that concealed its financial situation, and officials ignored TierOne’s own loan policy rules in approving the loans.

The eight had denied any personal liability for the bank’s failure. The settlement doesn’t require them to admit any wrongdoing.

Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

© 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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