A Kansas Bank Nears Bankruptcy…Are Regulators to Blame?

July 22nd, 2009
| More
Contributed by: Teri Buhl
As a bank in Olathe, Kansas teeters on the brink of bankruptcy, former executives are blaming regulators that turned a blind eye even when the bank’s own employees proactively approached the Kansas Region Office of Thrift Supervision to report the alleged misconduct. Security Savings Bank, the federally-chartered savings bank in question, is headed by prominent real estate developer and home builder Donald H. Bell Jr., who publicly asserts that “God had directed him” to buy a small Kansas bank in order to further God’s purpose.

Today, the bank is posting million dollar quarterly losses and recently faced a securities fraud suit brought by investors in the bank’s holding company. And with former employees coming forward with allegations that Bell threatened staff members, disregarded corporate governance requirements, and routinely used the bank for his own personal gain, the public is beginning to wonder if regulators are to blame.

To see the whole story, please click “Source” below.
See Source
Related Article Tags: Hedge Fund Fraud and Ponzi Scheme News; Hedge Fund Resources and Featured Partner News


More Recent Headlines

Hedge Fund Spotlight: Generation Investment Management, Resolve Capital and Craigmillar

T. Boone Pickens has Momentum, Seeks more funds for BP Capital

Hedge Funds to Have More Oversight?

Steel Partners says Carl Icahn Fights on in Caymans

Ex-DKR Oasis Analysts Announce Instinct Capital

Ex-Fortress Manager Announces Minerva Macro Fund

Klintberg Launches Kima Capital

Ironfire Wants SEC to Break Up Broadridge's Proxy Monopoly

Lansdowne and Patrick Degorce partner to launch Theleme Hedge Fund

Greentech Capital Advisors Launches as First Clean Technology and Alternative Energy Investment Bank