Former directors of Texas bank banned and fined

The OCC has issued Consent Orders to four former directors of the First National Bank, Edinburg, Texas (closed in 2013) -- Dwayne Bair, Oscar Garza Jr., Arcadio Guerra, and Jack McClelland -- directing that each pay a civil money penalty of $5,000, and that each share the order with any future employer in the banking industry.

The four were voting members of the bank's Loan and Discount Committee while they were directors. The OCC found that they approved and ratified loans with concessionary and liberal terms to unqualified borrowers to finance the borrower's purchase of stick in the bank's holding company; approved and ratified loans with concessionary and liberal terms to unqualified borrowers to sell the bank's foreclosed real estate (OREO) at above-market prices, and on some occasions without a credit analysis of the borrower.

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