- Maryland
Regulators closed the $452 million-asset Bradford Bank in Baltimore on Friday. It was a mutual bank owned by the holding companies Bradford Bank MHC and Bradford Mid-Tier Co.
September 2 -
The last time Bradford Bank in Baltimore tried to go public it had growth in mind, but this time its proposed conversion is more about pumping up capital to satisfy regulators.
October 10 -
More than the name has changed at Baltimore’s Bradford Bank, which was Bradford Savings and Loan until last month.
July 16 -
The three-year statute of limitations from when bank failures peaked has already passed, and yet filings of Federal Deposit Insurance Corp. suits against former officers and directors continue to grow.
February 28
The Federal Deposit Insurance Corp. is suing four former officers and directors of a failed Baltimore bank for more than $7.4 million in damages.
The former officials of Bradford Bank allegedly approved a number of risky real estate loans that contributed to the bank's collapse, according to
Between July 2006 and October 2007, the defendants allegedly increased Bradford's concentration in commercial real estate and acquisition, development and construction loans in violation of the bank's lending policy, according to the lawsuit. Spurred by an aggressive growth strategy that called for the $452 million-asset bank to reach $1 billion in assets by 2008, the defendants allegedly recommended and approved loans to borrowers who were not creditworthy and failed to exercise caution despite clear signs of the economic downturn. As the real estate market deteriorated in 2007, Bradford's delinquencies and loan losses swelled.
"In 2009, the bank's classified assets reached a total of $41.6 million a 52.9% increase since December 2007," the lawsuit says.
The flawed loans
The FDIC is charging the defendants with negligence and gross negligence.
The agency has been suing failed-bank officers and directors at a steady clip in 2014, with six lawsuits filed in the first six weeks of the year. "We have hit the peak or are hitting it right now. The numbers will start coming down," the FDIC's acting general counsel, Richard J. Osterman Jr.,