Thread Starter: Dan Persfull
Title: Re: Reg O Violation?
|
Reg O does not regulate deposits.
From the FDIC's Pocket Guide for Directors:
Avoid Preferential Transactions
--------------------------------------------------------------------------------
Avoid all preferential transactions involving insiders or their related interests. Financial transactions with insiders must be beyond reproach. They must be in full compliance with laws and regulations concerning such transactions, and be judged according to the same objective criteria used in transactions with ordinary customers. The basis for such decisions must be fully documented. Directors and officers who permit preferential treatment of insiders breach their responsibilities, can expose themselves to serious civil and criminal liability, and may expose their institution to a greater than ordinary risk of loss.
This is also addressed for national banks where directors should not receive more favorable deposit rates but I can't find the cite. Maybe someone else can help with that.
|
|
|
|
