Fed Bars Former Regions Bank Executive Neely From Bankingby
Neely ordered to pay $100,000 for breaching fiduciary duties
Resolves 2014 Fed charge concerning former exec.'s conduct
The Federal Reserve Board has barred former Regions Bank Executive Vice-President Thomas A. Neely Jr. from participating in the affairs of any insured depository institution and ordered him to pay $100,000 to settle charges that he breached his fiduciary duties.
The penalty resolves a June 2014 administrative charge brought against Neely, according to a Fed announcement released Monday in Washington. Those charges said that Neely had violated the law, engaged in unsafe and unsound banking practices, and breached his fiduciary duties through his role in Regions’ improper reporting of non-accrual loans in the first quarter of 2009.
In June 2014 the Fed assessed a $2.4 million civil penalty for Neely and levied a $46 million fine against Birmingham, Alabama-based Regions Bank, which was also fined $5 million by the Alabama Department of Banking.
A Security and Exchange Commission release from last June says that Neely circumvented internal controls and intentionally misclassified loans, and such problems led to overstated income before taxes and earnings per common share. Neely stopped working at Regions on Nov. 30, 2010, the SEC filing shows.
Bad loans contributed to more than $7 billion of losses in the four years through 2011 at the lender, which took a $3.5 billion taxpayer bailout in 2008 to stay afloat. Regions took longer than larger banks to repay the money, leaving it the biggest recipient of aid when it exited the bailout program in 2012.