S&P Global Market Intelligence rounds up a selection of recent legal and regulatory developments in the bank space.
* Ex-Greater Eastern CU CEO under investigation for misappropriating $1.2M fund
Former Greater Eastern CU CEO Sherry Allen faces an investigation over claims she misappropriated about $1.2 million in credit union funds for personal benefit and other unauthorized purposes, News Channel 11 reported Feb. 20.
* Clifton, Kearny face merger-related suit
A purported Clifton Bancorp Inc. stockholder is suing New Jersey-based Clifton, its board members and would-be acquirer Kearny Financial Corp.
* Huntington nears settlements, lowers loss estimate in excess of legal reserves
Huntington Bancshares Inc. is close to settling two lawsuits, and estimates a possible loss of up to $55 million in excess of legal reserves, as of Dec. 31, 2017.
* Ex-CEO of failed Michigan-based credit union pleads guilty in embezzlement case
Former Valley State CU CEO Stanley Hayes pleaded guilty to charges of embezzlement of more than $710,000 against him in the 10th Circuit Court in Saginaw, Mich.
* Lawsuit seeks to stop First Mid-Illinois/First BancTrust deal
A lawsuit is seeking to block the pending merger between Mattoon, Ill.-based First Mid-Illinois Bancshares Inc. and Champaign, Ill.-based First BancTrust Corp., claiming the companies did not disclose material information on a registration statement connected with the deal.
* Jury finds BofA guilty of blacklisting, defaming former client manager
A federal jury in California found Bank of America Corp. acted with malice when it illegally blacklisted and defamed a former client manager of the company.