Federal regulators say a suburban bank president...
Federal regulators say a suburban bank president acted improperly in granting a $200,000 loan to Jerry Buss, owner of the Lakers and the Forum and former owner of the Kings, because the banker had outside business ties to the sports entrepreneur.
George De Piano, president of Rancho Bank of San Dimas, owns 10% of Buss’ Lazers Major Indoor Soccer League team. He confirmed the conflict-of-interest decision by the Federal Deposit Insurance Corp. on Thursday in an interview with the Herald Examiner.
De Piano said the FDIC issued a cease-and-desist order requiring the bank revise its lending policies to preclude officers from becoming involved in loans to people with whom they have financial ties.
The bank didn’t contest the FDIC order, but both De Piano and Buss denied any wrongdoing.
At issue was a January 1986 loan to Buss by the bank. The loan was guaranteed by De Piano. Buss has since repayed the loan.
Rancho Bank is a small institution with $36 million in assets.
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