Small Town Bankster
Reckless lending, casino gambling and allegedly doctored books led to the demise of a century-old community bank. Now its CEO faces prison time.
This Week In Blunders Nov. 30-Dec. 6
“We do not want and will not have another epidemic of bank failures.” – President Franklin D. Roosevelt, 1933.
This is going to sound like the 1980s: A small-town banker allegedly made dubious loans to friends and neighbors that were never repaid. Then he allegedly cooked the books to hide his recklessness as his century-old institution failed.
Danny Seibel, 54, headed the First National Bank of Lindsay, Okla., which had served its community of nearly 3,000 people since 1902. The bank once boasted $108 million
in assets. Regulators shut it down in October 2024.
On Thursday, a federal grand jury indicted Seibel on bank fraud charges. He faces up to 30 years in prison and a $1 million fine if convicted.
