According to several reports, former Chicago Bears quarterback Jim McMahon is one of seven former members of Illinois-based Broadway Bank’s board of directors to be named in a lawsuit brought by the Federal Deposit Insurance Corporation (FDIC).
The suit brought by the FDIC is in attempt to recover $104 million in bad loans issued by the bank prior to its dissolution in 2010.
McMahon, the controversial fan-favorite, quarterbacked the Bears under head coach Mike Ditka from 1982-1988, leading the team to victory in Super Bowl XX in 1985. McMahon played for seven more teams over nine seasons, taking his last snaps for the Green Bay Packers as a backup in 1996.
The FDIC suit charges McMahon with “inattention to the bank’s matters” and outlines his personal responsibility in the approval of several bad loans during his time on the Broadway Bank Board of Directors:
According to the FDIC, the entire bank board was “grossly inattentive to the affairs of the bank — deferring excessively to the whims of the Giannoulias family.
As a consequence, reports were not closely read, little or no due diligence into the bank’s condition was done, regulatory criticisms were discounted, and, for defendant McMahon, important board meetings frequently were missed or ignored.”
McMahon’s attorneys issued a brief statement on his behalf, in which McMahon disavows any responsibility in the bank’s collapse:
With the advantage of 20-20 hindsight, the FDIC now blames Broadway’s former officers and directors for not anticipating the same unprecedented market forces that also surprised central bankers, national banks, economists, major Wall Street firms and the regulators themselves.
I am proud to have served as an outside, independent director for a brief part of the bank’s history. The allegations in the complaint are utterly without merit, and I expect to be fully vindicated.
Time, and the FDIC’s findings, will reveal just how complicit Jim McMahon was in the failure of Broadway Bank, but given he was on the Board of Directors of the bank, his lawyers have a significant task on their hands to remove him from the picture.
It’s yet another case of an ex-NFL star getting caught up in financial difficulties brought own by their own mismanagement or poor decision-making, of which the numbers are many.
More articles about McMahon’s role in the failed Broadway Bank:
Jim McMahon Named in Bank Fraud Case: http://yhoo.it/Ibwdgo
Feds aim to sack former Bears QB McMahon: http://bit.ly/Ia4HwA