FDIC IMPOSES CIVIL MONEY PENALTY
AGAINST ILLINOIS BANKER
FOR IMMEDIATE RELEASE PR-43-2003 (5-6-2003)
Media Contact: Frank Gresock 202-898-6634
The Federal Deposit Insurance Corporation (FDIC) has imposed a civil money penalty against Robert G. Hershenhorn.
Hershenhorn, Chairman of the Board of First Bank and Trust Company of Illinois, Palatine, IL, is the controlling shareholder of the bank.
The FDIC's actions are based on allegations that Hershenhorn had failed to ensure that the bank obtained appraisals before underwriting, approving and funding large commercial real estate loans. Numerous loans were found to have been booked, between September 1999 and January 2001, without timely written appraisals.
Under the terms of the order, Hershenhorn must pay a civil money penalty in the amount of $20,000.
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 9,354 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars - insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet via the World Wide Web at www.fdic.gov and may also be obtained through the FDIC's Public Information Center (877-275-3342 or (703) 562-2200).