Trust Examiner School eBook

Internal Use Only

Internal Use Only

Key Takeaways A conflict of interest occurs when a fiduciary's duty of loyalty to its trust customers clashes with other interests which the fiduciary may be subject to. Self-dealing occurs when a trustee is dealing with itself or an affiliate in sale of bank assets to a trust or the reverse, sale of assets between accounts, and transactions involving own-stock or other obligations including deposits. Contingent liabilities represent an estimation by the examiner of the gross possible liability of the institution. Insider Investments consist of stock or obligations of an entity in which directors, officers, employees, or other insiders have a material interest. Trust departments should have a written policy prohibiting the misuse of material inside information .