| A Community Bank Director Advisor | Issue #53 - November 2011 |
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Does your bank’s Compensation Committee have all the tools it needs to properly review, authorize and approve compensation at the bank? The Moss Adams & WIB 2011 Community Bank Compensation Survey can help your bank’s Compensation Committee see how the bank stacks up. The results provide banking professionals with crucial information and is an invaluable guide for professionals in business planning. WIB members who participated in the survey will receive the results at no charge. Click here to see if your bank participated and to request or order the survey. Approving
Loans Is a Risky Role for Bank Directors Recent FDIC lawsuits against directors of failed banks assert that they are personally liable for voting to approve individual loans that went bad if the loans had deficiencies at the time of approval. This places bank directors in the shoes of loan and credit officers, a role for which they are both unsuited and unqualified. It may be time for bank directors to stop approving loans and instead to delegate all non-insider loan approvals to bank officers and officer loan committees. <read more> 406
Bank Failures Since 2008 – Lessons for the Survivors On October 11, 2011, just prior to the second anniversary of United Commercial Bank’s failure, the U.S. Attorney for Northern California unsealed a criminal indictment that resulted in the arrest of two former UCB executives. The investigation is “ongoing,” meaning more indictments are possible. <read more> Keeping
on Top of Regulatory Guidance Regarding Anti-Money Laundering
and Bank Secrecy (AML/BSA) The challenge to stay on top of not only regulatory guidance but also evolving expectations has been challenging for bank management and directors for the past few years. Those challenges continue with the latest guidance related to AML System Validation. This article offers an important update on this guidance. <read more> What
You Need To Know About Troubled Debt Restructurings As the economy continues to struggle, many creditors have been reintroduced to a topic left on the bookshelves of the past. FASB Statement No. 15, Accounting by Debtors and Creditors for Troubled Debt Restructurings, was issued in June 1977 and Statement No. 114, Accounting by Creditors for Impairment of a Loan – an Amendment of FASB Statements No. 5 and 15 was issued in May 1993. During the past few years, borrowers have been experiencing the strain of the economy which has resulted in many lenders restructuring loans. There has been diversity in practice as to how these restructurings have been treated by lenders. <read more>  Take
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Article Archives! You'll find a variety of articles on
important topics.
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