David Nasatir Discusses Metropolitan Commercial Bank’s Decision to Rescind Loan to its CEO
Obermayer Chair David Nasatir was interviewed by American Banker on May 2, 2023, in connection with Metropolitan Bank Holding’s decision to rescind a $7.5 million loan it made to its CEO, and to cancel a stock purchase he used the proceeds to fund, after determining that the loan was likely impermissible.
Dave theorized that the bank might have violated part of Regulation O, which governs how credit is extended to insiders at banks.
“Regulation O is very detailed on giving loans to any senior officers of a company. The rules are so tough that the overwhelming majority of bank executives seek financing outside of their institutions,” Dave said.
He also added that he suspects Metropolitan took a second look because they’re uneasy at the scrutiny they could be getting.
“Everyone is trying to scrub themselves clean,” Dave said.
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