WASHINGTON -- Before taking Milwaukee's Guaranty Bank public, its executives changed the institution into a state-chartered savings bank, allowing them to buy moreshares of the hot stock than the depositors who owned the institution.

If Guaranty had kept its federal charter, the executives would have been allowed to buy roughly 30% of the stock. But Wisconsin laws set no such limits, and the company's management doubled its share to 65% of the stock sold in the oversubscribed initial offering.

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