WASHINGTON - Donald Coleman, former chief financial officer of the failed National Bank of Washington, agreed Tuesday to pay the government $55,000 in fines.
Mr. Coleman is the third NBW official to be fined since the $1.6 billion-asset bank failed in August 1990.
He agreed to pay the penalty, imposed by the Office of the Comptroller of the Currency, but did not admit or deny any violations of law.
The national bank regulator had accused Mr. Coleman of violating banking and securities laws from 1988 to 1990.
Steps to Default
Mr. Coleman allegedly authorized $35 million in commercial paper sales at the bank's holding company even after the bank's backup lines of credit had expired without renewal.
Without the backup credits, the bank was unable to ensure repayment of the outstanding debt and eventually defaulted on about $25 million.
Mr. Coleman also was accused of exceeding bank lending limits in extensions of credit to its affiliate, Washington Mortgage Group.
He was also alleged to have improperly covered losses at the mortgage unit.