Jim McMahon sued over failed bank loans
The Punky QB might be called some other things by those in the banking community right now.
Jim McMahon, the quarterback of the Super Bowl XX champion Chicago Bears, is being sued by the FDIC. Yes, that FDIC, the Federal Deposit Insurance Corporation.
Last month, the FDIC sued former officers and directors of Chicago-based Broadway Bank. The FDIC is seeking to recover $104 million in losses from 17 bad loans, according to the Chicago Tribune.
McMahon served as a director for the bank from 2003 to 2008. Per the report, he repeatedly missed board meetings. He is accused along with five others of approving a $28 million loan to Normandy Shores LLC that resulted in a $19 million loss for the bank.
McMahon asserts he has done nothing wrong.
"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," McMahon said, per the report. "The allegations in the complaint are utterly without merit and I expect to be fully vindicated by the court."
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Brad Biggs covers the Bears for the Chicago Tribune