The Supreme Court unanimously reversed a lower court’s order that a banker be banned from the financial services industry for life on May 22.
Harry C. Calcutt III was president and CEO of Traverse City, Michigan-based Northwestern Bank before it was purchased by a competitor.
The government alleged Calcutt participated in improper lending practices that led the small bank to incur millions of dollars in losses.
The Federal Deposit Insurance Corporation (FDIC) brought an enforcement action against Calcutt for allegedly mismanaging one of the bank’s loan relationships in the wake of the “Great Recession” of 2007–2009. After an FDIC administrative law judge made a recommendation, the agency ordered Calcutt removed from his position, prohibited him from further banking activities, and assessed $125,000 in civil penalties under the Federal Deposit Insurance Act, according to the Supreme Court….