Allegations of FRAUD by OCC Deputy against FNB????

Straight from the Horses Mouth!

In an April 2014 story in the San Antonio Express News by Patrick Danner, OCC Deputy Comptroller Gil Barker stated that only three national banks in Texas had been shut down since the great depression.  

Those three banks, 

La Coste National Bank (2010), 

First National Bank Edinburg (September 2013) 

and most recently,  

Texas Community Bank of The Woodlands (February 2014) were the institutions Barker was referring to.

However, Barker went on to state that in 

"Two of those situations, there was fraud".

So let's take a look and see just for shits and giggles if one can figure out which bank wasn't closed with elements of fraud.

In 2011, the President of La Coste Bank went to federal prison after pleading guilty to making a false entry in the bank's books with the intent to defraud and deceive banking regulators.  OK, there's one of the two fraud cases Barker referred to from his April 2014 statement.  One down, one to go!

Now, let's look at Texas Community Bank.  The Office of Inspector General's Material Loss Review was released this summer and there was no mention of fraud as to why the bank failed and was shut down.

Uh Oh!  

I think the music stopped and there's no more chairs!

OK, let's flashback to February 2011 and look at the OCC Consent order issued to FNB.  It states below:

ARTICLE VIII 

VIOLATIONS OF LAW

(1) The Board shall require and the Bank shall immediately take all necessary steps to correct each violation of law, rule, or regulation cited in the most recent Report of Examination (“ROE”), any subsequent ROE, or brought to the Board’s or Bank’s attention in writing by management, regulators, auditors, loan review, or other compliance efforts. 

So is one to assume that the good deputy of the OCC has confirmation of fraudulent violations of FNB and/or their officers/directors during their tenure??  

After all, it was only a cool $637,000,000 loss!

Just can't wait to get a copy of that ROE!!