fraud case (where they tried to bribe the bank official).
I was a Loan Review Officer for several years. My job was to review the existing loan portfolio for safety and soundness issues, compliance with Federal and State Rules and Regulations and internal Bank policies and procedures. We also reviewed new loans (every loan above a certain $ threshold and a random sample of new loans below that threshold).
The fact that a Senior Bank official was actually considering granting a multi-million dollar loan knowing that Manafort had provided false information shows that the official was not operating within safety and soundness and in the bank's best interest. I seriously doubt that the Bank President and Board would have been happy about such a loan. As a Loan Review Officer I would want to conduct a thorough review of the guy's entire loan portfolio. If he was willing to make this loan you know that he has made other questionable loans.
I have run an audit review of a rogue group of loan officers and I know from my personal experience that the President and Board were pretty pissed off when they read my report and saw the extent of the group's bad acts. They ordered that every loan officer at that bank receive a copy of the written report with a warning that they never wanted to see a report like that again regarding loan officer behavior.
You cannot claim that the bad acts of one employee represents proper approval by the entire bank.
There was one training exercise that was conducted for loan review officer and credit analysts. We were divided into 2 groups. Each group was given a set of documents. The exercise was, this client wants a new loan for $X amount of money (can't remember how much but at least a 6 figure amount) and we were to review our packet and say whether or not we would grant the loan. Here is where it got interesting. One group got a packet that sure as heck made the guy look good and they came back with a favorable ruling that they would grant the loan. Our group got the more interesting package. The bank that I worked for had purchased two other banks so we were a conglomeration of what had been 3 banks. This particular real life client had been a customer of two of the banks. Our package contained copies of the financial statements that the guy had provided to his 2 different loan officers. Interestingly enough, the financial statement given to each loan officer did not mention the loan that the other loan officer had provided the guy. The client had given both loan officer fraudulent statements. Our response was that not only would we not extend any additional credit but we would be talking with the police about the client. Once the bank became aware of what the client was doing that brought a pretty fast end to that banking relationship.
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