Igler & Pearlman Win FDIC Appeal for a Florida Community Bank
TALLAHASSEE, Fla., Jan. 23, 2024 /PRNewswire/ -- The FDIC's Supervision Appeals Review Committee (SARC) has reversed the Atlanta Regional Office's conclusion that a Florida community bank violated Regulation O, governing loans to insiders.
The SARC determined that the Regional Office was wrong when it found that the bank's Chairman of the Board was serving as an executive officer. Despite the board annually adopting a resolution excluding the Chairman from such classification, the examiners determined that his service on the Board's Loan and Investment Committees made him an executive officer. Igler & Pearlman successfully argued that the FDIC relied on incorrect readings of previous FDIC guidance, Florida law, and the plain language of Regulation O.
"We are grateful that the SARC approached our client's appeal with an open mind and was willing to correct FDIC examiners when they attempted to overreach," said Richard Pearlman, lead lawyer on the appeal. He continued, "We are pleased to have helped our client achieve the right result. When confronted with incorrect or improper exam findings, banks should consider using the FDIC's internal appeals process. This decision shows that it can work in their favor."
The SARC's full decision can be found at https://www.fdic.gov/resources/regulations/appeals-of-material-supervisory-determination/appeals/sarc202301.pdf
The law firm of Igler & Pearlman regularly represents banks, thrifts, and credit unions in matters before the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Reserve Banks, the National Credit Union Administration, and state regulatory agencies.
SOURCE Igler and Pearlman, PA
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