Former TierOne CEO’s trial will cap stunning 2010 collapse of bank
http://www.omaha.com/money/former-tierone-ceo-s-trial-will-cap-stunning-collapse-of/article_fec3f808-349a-5ac7-b87b-4046dabf9103.html
POSTED: WEDNESDAY, OCTOBER 21, 2015 12:30 AM
By Russell Hubbard / World-Herald staff writer
In 2006, times were flush at Lincolns TierOne Bank, then the second-largest bank based in Nebraska.
The stock had hit an all-time closing high of $34.10, and annual profit would reach $41 million, up 70 percent from two years earlier. Loans outstanding had risen 70 percent in the previous four years to about $3 billion.
Those loans would trigger the largest bank failure in Nebraska history. TierOne was not only insolvent and shuttered by regulators in 2010, its chief executive, Gilbert Lundstrom, now is facing federal criminal charges for fraud related to the swollen loan portfolio.
Hes accused by prosecutors of faking numbers from 2008 to 2010 to make risky out-of-state real estate loans look more collectible than they were, thereby fooling regulators, boosting the companys share price and deceiving investors.
FULL story.