Banking, Finance and Due Diligence: A case-study of the near failure of a small regional US bank with emphasis on insufficient due diligence as a causal ... implications for the regulatory framework

A case study of the near failure of a small US bank with an emphasis on insufficient due diligence as a causal factor is the focus of this thesis.Further implications for the regulatory framework are also considered. The literature review reveals the reasons for bank failures from the 1930’s through 2008. A triangulation of methods, financial analysis,  statistical analysis, and interview by questionnaire, was utilized to reveal aspects of the financial health of the bank and gain insight regarding due diligence. Analysis of the exceptions or oversights was performed to discern the count of error and to gain an indication of the overall condition or value of the commercial loan portfolio prior to a merger with a bank of their peer group. Also considered was the idea of merger or acquisition over bank failure and the role of the Federal Deposit Insurance Corporation, the Comptroller of the Currency, and the US Government. The current financial crises in the US began as a subprime issue in the mortgage industry centering on insufficient due diligence and fraud. It is now of global proportion.