Federal regulators put limits former Generations Bank exec
Bank regulators prohibited Rebecca Post, former president of Generations Bank, from holding any office in a bank without their prior written consent.
Overland Park-based Generations Bank, previously was owned by now-bankrupt Brooke Corp. Regulators and the bankruptcy court still must determine the bank’s fate.
Post, without admitting or denying that grounds exist, agreed to an order the Office of Thrift Supervision issued Dec. 16.
The OTS found in the order of prohibition that Post breached her fiduciary duty to the bank by allowing the accounts of Brooke Corp., its subsidiaries and its holding company to become overdrawn without billing or collecting overdraft fees or accruing interest charges to the accounts. The OTS also found that Post allowed the bank to participate in a series of loan transactions with other entities without proper underwriting, without loan committee approval and in violation of a directive the OTS issued against the bank on June 13, 2008.
Post waived her right to seek judicial review or to otherwise challenge the validity of the order. Post also acknowledged that the order is subject to federal law, which carries a penalty of potential imprisonment of not more than five years and a fine of not more than $1 million, for violating the order.
Filed under: legal by Wolf