Part of the beauty of blogging is its ability to generate constructive feedback. Some feedback yesterday led me to research the trail of insider lending at Pacific Capital. I'm glad I did, because there's more smoke out there and it points to CEO George Leis.
When I wrote yesterday about the incidence of high levels of credit extensions to insiders at Pacific Capital, it provoked some good responses. One of those responses was this:
"Have you researched 'when' these loans were made? I would venture to guess over a long period of time, and not in the last few quarters."
This is a very good question. It takes the facts that I observed yesterday (lots of lending at a bank to its insiders), but by giving those decisions a time frame, it gives a better picture of the appropriateness of that decision-making.
Just for sake of definitions, insiders are considered to be "executive officers, directors, and prinicipal