Federal regulators have banned two appraisers from working for banks.
The Federal Reserve Board, Comptroller's Office, and Federal Deposit Insurance Corp. found that Joseph G. Donner Jr. and Albert L. Margolin performed inaccurate appraisals that contributed to the failure of Midland Bank in Kansas.
The agencies said in Aug. 14 orders that Mr. Donner and Mr. Margolin "knowingly and recklessly" violated the law by submitting inflated and unsupported estimates of a property's fair-market value. These inaccurate appraisals caused the bank to lose money, the agencies said.
Separately, the Fed on Tuesday ordered Ohio's Bank of Corning Co. to withhold all dividend payments and to conduct a complete review of its management structure within 90 days. The Fed also said the bank must increase its loan loss reserves and draft a written loan policy.