Every so often the South Dakota Banking Commission finds itself in muddy waters.
There was the 2010 decision in which the commissioners decided an offshore lender wasn’t a bank. The matter involved a large loan to what then was Northern Beef Packers at Aberdeen.
Unknown to the public at the time, the EB-5 program’s management was headed into scandal land. We learned a lot about it three years later. We still don’t know it all.
This month the commission emerged from a different thicket, allowing First State Bank of Roscoe to open a branch in Eureka.
The commission’s 4-0 decision reversed the state banking division.
The division’s regulators thought the expansion should be denied because, based on three sets of lawsuits, character and fitness of management were lacking.
The commission’s five members are current or former bankers. They thought otherwise.
Just days later, U.S. Bankruptcy Judge Charles Nail found First State Bank of Roscoe and its chief, John R. Beyers, guilty of contempt.
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