The Federal Reserve has ruled that the former president of a Cecil County, MD bank should be banned for life from the business.
The decision covering Jacob “Jack Goldstein” was issued earlier this month. A former board member of the bank was earlier banned from the industry.
The case cites Goldstein’s actions in leading to NBRS (National Bank of Rising Sun) running into financial trouble. Goldstein came to NBRS with an impressive resume in the Maryland banking business.
Maryland regulators closed the bank in 2014. Branches were acquired by another bank.
NBRS was founded in 1880 and survived the Great Depression of the 1930s.
The bank operated out of its headquarters in Rising Sun and out of five branches located in Maryland and Pennsylvania.
Banks ended up under the microscope, due to the federal government’s TARP program, which invested capital in U.S. banks following the financial and mortgage meltdown of 2008 and 2009.
The government has since sold its equity stakes in banks often at a profit.
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The other locally owned bank in Cecil County, Cecil Bank, also ran into difficulties with loans and ended up under the close supervision of regulators.
Cecil Bank caused headaches for some small business customers in New Castle County that had banking relationships, including loans, with the financial institution.
Across the line in Delaware, powerful financial institution Wilmington Trust collapsed under the weight of bad loans, with Buffalo-based M&T buying the former blue-chip bank and financial services company for a fraction of its former value.
A variety of bad loans, including alleged reckless lending for raw land in southern Delaware have been cited as reasons for the bank’s woes.
M&T continues to use the Wilmington Trust name for its trust and investment management operations, but converted branches to the M&T name.
Former executives of Wilmington Trust are headed to trial in federal court in Delaware. All have pleaded innocent.
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