Tuesday, March 24, 2009

banks loaned millions to insiders

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http://www.mcclatchydc.com/homepage/story/64551.html


Seven of the 10 banks with the largest insider loans received a total of more than $50 billion in the banking bailout late last year, banks' federal filings show.

Banks nationwide hold $41 billion in loans to directors, top executives and other insiders, a portfolio that experts say should be stripped of secrecy.

Insider lending to directors is particularly troublesome because it could cloud the judgment of people charged with protecting shareholders and overseeing bank management, the experts say.