Commentary and information about public safety and security, intelligence and counterintelligence, open government and secrecy, and other issues in northern Idaho and eastern Washington.

Location: Coeur d'Alene, Idaho, United States

Raised in Palouse, WA. Graduated from Washington State University. US Army (Counterintelligence). US Secret Service (Technical Security Division) in Fantasyland-on-the-Potomac and Los Angeles. Now living in north Idaho.

Thursday, March 01, 2007

"Bank Examiner! Halt or I'll Put On My Green Eyeshade!"

Okay, the title is a little far-fetched. It's really not likely that the next action figure toy from Hasbro, Inc. will be a bank examiner. Still, there are few finance industry professionals who do more to protect the money we put in banks insured by the Federal Deposit Insurance Corporation (FDIC).

The early detection of apparent fraud and insider abuse by bank employees is an essential element in limiting the risk to the FDIC's deposit insurance funds and uninsured depositors.

Included under each of the following subject areas is a summary of potential problems, a listing of warning signs of potential fraud and insider abuse and suggested action for investigation.

  • Corporate Culture/Ethics
  • Insider Transactions
  • Loan Participations
  • Real Estate Lending
  • Secured Lending
  • Third Party Obligations
  • Lending to Buy Tax Shelter Investments
  • Linked Financing/Brokered Deposits
  • Credit Cards and ATM Transactions
  • Advance Fee Schemes
  • Offshore Transactions
  • Wire Transfers
  • Money Laundering
  • Securities Trading Activities
  • Miscellaneous

For an elaboration about each of these subject areas that includes a description of the potential problems, the warning signs, and suggested actions, see the FDIC Risk Management Manual of Examination Policies. The Warning Signs in particular are especially relevant to consumers since we may see them when conscientiously examining our monthly banks statements, applying for mortgage and other loans, or being sure we don't become victims of credit and debit card fraud and identity theft.


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