Douglas J. Lipke, Chair, Corporate Reorganization, Bankruptcy Insolvency group, quoted in "The Devil in the Details" by Charles Keenan in the 4th Quarter, 2008, Bank Director, magazine speaking about the real estate crisis and firm's boards getting detailed reports regarding credit.

"The devil is in the details," Lipke says. "The board should, in times like this, insist on very detailed reports on credits over a certain amount." The minimum-sized loan depends on the size of the bank, so there is no golden rule on what a board should see."

Another critical element includes making sure management knows the borrower, Lipke add. "You might have good collateral and a good business plan," he says. "But if you don't know the borrowers well enough to know how they are going to react in good times and in bad, then you're making a mistake. It's the same and even more important when you are doing a workout. You have to know whether you should crash and burn or do a forbearance agreement and work it out."