Former TierOne Bank officials settle with FDIC

By: AP
By: AP

Lincoln, NE (AP) -
Federal regulators have settled a lawsuit filed against former officials of the failed TierOne Bank officials for $6.5 million.

The Lincoln Journal Star says the Federal Deposit Insurance Corp. filed the lawsuit last June against eight former executives and board members. The FDIC said the eight improperly approved risky loans in Las Vegas that contributed to the bank's failure.

TierOne failed in 2010, and the Lincoln-based bank's assets were sold to Great Western Bank.

The FDIC said the bank extended the terms of its bad loans in ways that concealed its financial situation, and officials ignored TierOne's own loan policy rules in approving the loans.

The eight had denied any personal liability for the bank's failure. The settlement doesn't require them to admit any wrongdoing.

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