You have to love these portions of the recent FDIC OIG report on the collapse of Florida Community Bank (page 6).
"At that time, he originated 80 percent to 90 percent of the loans, wrote most of the bank’s policies, conducted a majority of in-house appraisals and outside appraisal reviews, and managed the bank’s daily affairs."
"The CEO was abetted by the Board. The Board did not adequately exert its authority, and Board members did not have sufficient CRE expertise to question the judgment of the CEO. There was no apparent effort to seek new Board members to complement the bank’s geographic expansion into the major metropolitan areas of Southwest Florida, or to change the CRE lending emphasis."
Beware of the one man banks.
LINK TO REPORT HERE
