SEC investigating Franklin Bank

The Securities and Exchange Commission is investigating Franklin Bank after an internal probe revealed accounting errors tied to residential real estate loans.
MAY 20, 2008
The Securities and Exchange Commission is investigating Franklin Bank Corp. after an internal probe of lending practices revealed accounting errors tied to residential real estate loans. The Houston-based bank’s audit committee findings have led to an earlier than expected retirement for Franklin’s founder and chief executive officer Anthony Nocella, who is being replaced on an interim basis by Lewis Ranieri, chairman and chief architect of the mortgage-based securities market. As a result of the SEC investigation, Franklin has yet to release its first quarter financial statements and may need to adjust its fourth quarter result of a $66.1 million loss, bank officials noted. Franklin might be a takeover target as the bank has received numerous acquisition inquiries from mainly private-equity groups, Daniel Bass, managing director at Houston-based Carson-Medlin Co., said in a Bloomberg story today. Franklin officials did not immedtiately return calls seeking comments on the possibility of being taken over. The Texas bank, which was founded in 2002, has around $540 million in total assets.

Latest News

FINRA fines Vanguard $950,000 over decade of cost basis errors
FINRA fines Vanguard $950,000 over decade of cost basis errors

Faulty Forms 1099 and account statements reportedly left some Vanguard brokerage customers overpaying or underpaying taxes for over a decade.

More ETFs, more opportunity, more homework
More ETFs, more opportunity, more homework

The democratization of ETFs cuts both ways

Advisor moves: Raymond James, Baird add significant teams in latest recruiting push
Advisor moves: Raymond James, Baird add significant teams in latest recruiting push

Independent broker-dealers snap up experienced advisors as competition for established practices intensifies.

Wells Fargo names COO Scott Powell as its next chief risk officer
Wells Fargo names COO Scott Powell as its next chief risk officer

Derek Flowers, a nearly 30-year veteran, is set to retire in mid-January, handing the reins to the executive who helped lead the bank's regulatory turnaround.

Ameriprise runs advisor ads on ESPN, Golf Channel, CBS
Ameriprise runs advisor ads on ESPN, Golf Channel, CBS

The campaign spans broadcast TV and streaming, as the brokerage faces slowing client net flows and an $8.1 billion advisor team that left to launch an RIA this month.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains