After the FDIC proposed a $2 million civil money penalty an investigation on behalf of investors in Republic Bancorp, Inc. KY (NASDAQ RBCAA) over possible breaches of fiduciary duties by certain officers and directors at Republic Bancorp, Inc. KY. was announced.

The investigation by a law firm focuses on possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Republic Bancorp, Inc.

Republic Bancorps Total Assets increased from $3.165billion in 2007 to $3.622billion in 2010. Republic Bancorps 12months Net Income rose from $24.91million for 2007 to $64.75million for 2010.

Republic Bancorp, Inc. disclosed in a filing with the U.S. Securities and Exchange Commission that Republic Bancorps history, Republic Bank & Trust Company, a wholly-owned subsidiary of Republic Bancorp received on May 3, 2011 an amended Notice of Charges from the Federal Deposit Insurance Corporation (the FDIC) primarily regarding its tax business.

Republic Bancorp, Inc. said the FDICs initial Notice of Charges was originated against the Bank on February 9, 2011, seeking the Banks exit from the Refund Anticipation Loan (RAL) business.
Republic Bancorp, Inc. further disclosed that the stated basis for the February 9th Notice was that the FDIC had concluded that the Bank currently uses a deficient credit underwriting process that may not have current tax liens and may not appropriately address the variety of variables necessary to establish default and loss probabilities during the 2011 tax season. The FDIC further asserted in the February 9th Notice that operating the RAL program without sufficient underwriting or the benefit of the DI is an unsafe or unsound practice, and subjects the Bank to abnormal risk.
The FDIC alleges that during the 2010 tax season the Republic Bank & Trust Company made approximately 836,835 RALs totaling in over $3billion, roughly equal to the average assets of the Bank.

The FDIC proposed in the amended Notice of Charges a $2 million fine against Republic Bancorp
Shares of Republic Bancorp, Inc. KY (NASDAQ:RBCAA) traded during 2010 over $25 per share and fell in February 2011 to under $17 per share.