This post was pilfered from The Joplin Globe website
Please note bracketed areas "[...]" are my highlights..
How does this [bullshit] pass for transparency?
December 19, 2011
Four former Mid-Missouri Bank officials banned from banking
By Wally Kennedy
JOPLIN, Mo. — Four former officials with Mid-Missouri Bank have been banned from further participation in the banking and financial industry by the Federal Deposit Insurance Corp.
Three of them also have been ordered to pay civil penalties.
Agreeing to the consent orders issued in October by the FDIC were Scott Rosenthal, former president and chief executive officer of Mid-Missouri Bank at 2230 E. 32nd St.; Frank B. McReynolds, a former senior vice president at that location; K. Chris Couch, a former executive vice president at that location; and Kayla Muskrat, a former loan officer at that location.
Rosenthal was ordered to pay civil penalties of $62,500; Couch, $50,000; and McReynolds, $13,500.
Rosenthal, formerly employed by the Hunte Corp., [could not be reached for comment] on Monday. Couch, who now works for a Joplin-based electrical supply company, [was unavailable for comment]. McReynolds, who also lives in the Joplin area, [could not be reached for comment] on Monday. Muskrat has an unlisted telephone number.
The bank employees were either fired or suspended in April 2007 when the bank announced it was launching an investigation in cooperation with the FDIC, the Missouri Division of Finance, the FBI and a bonding company.
At the time of the dismissals, Mid-Missouri Bank told its depositors and other customers that none of them were at risk.
A bank spokesman at the time said no credit had been extended to any customer beyond their ability to repay and that the incidents involving the employees had been going on for some time.
In agreeing to the consent orders, the four waived their right to a hearing of allegations that they violated the law, participated in unsafe and unsound banking practices and breached their fiduciary duties.
[Without admitting or denying any violations of the law or banking regulations], the four consented to the issuance of the orders by the FDIC.
LaJuan William-Young, spokeswoman for the FDIC, on Monday said the orders ban the former bank employees from working in the banking and financial industry. She said [she could not comment on or reveal the specific violations each respondent faced].
Travis Ford, spokesman for the Missouri Division of Finance, said the orders were issued by the FDIC. Because of that, [inquiries about the violations must be directed to the FDIC].
Ford said orders issued by the FDIC that relate to individuals “usually involve bad loans that put their bank at risk.’’
Eric McClure, president and chief executive officer of Springfield-based Mid-Missouri Bank, said, “We at Mid-Missouri Bank are absolutely dedicated to the Joplin community. [We are in good financial shape]. The actions by these individuals were more than four years ago. [We have moved on], and we’re thankful that justice does come around sometimes later than we wish.’’
McClure, who was named president of the bank in August 2010, said he is [not familiar with the incidents that were investigated]. As to their gravity, he said, “It has to be pretty serious for them to be banned from banking.’’
The FDIC, in its orders, said it had considered the matter and determined it [had reason to believe that the respondents had engaged or participated in violations of the law that would cause Mid-Missouri bank to suffer financial losses or other damage].
The FDIC said “such violations, practices and breaches of fiduciary duty involve personal dishonesty on the part of the respondent or demonstrate respondent’s [willful and continuing disregard for the safety or soundness of the bank].’’
The FDIC said its investigation showed the respondents’ “unfitness to serve’’ as a director or officer in the affairs of a bank.
Rosenthal, past president of the Joplin Area Chamber of Commerce, was employed from 1979 to 2001 by Southwest Missouri Bank, where he started as a part-time college teller, records show. He managed two locations for the bank in the Joplin market. [He also managed the bank’s investment portfolio] and handled trust department activities.
From September 2001 to April 2007, he was president of Bank of Joplin/Webb City Bank, managing six locations and more than 50 employees. During his tenure, the bank [grew total assets from $66 million to $275 million], moving from tenth in the marketplace to third.
On Aug. 1, 2006, Mid-Missouri Bank became the new name of the three Bank of Joplin locations and two Webb City Bank locations. Mid-Missouri Bank had been the parent bank of those locations since 1977.