The Latest: Stephen Calk pleads not guilty in loan scheme

The latest on the charges against bank CEO Stephen Calk (all times local):

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3:30 p.m.

A banker charged in New York with issuing loans to win a role in President Donald Trump's administration has pleaded not guilty.

Stephen Calk entered the plea during an appearance in Manhattan federal court Thursday.

Prosecutors say he was CEO of Chicago's The Federal Savings Bank when he approved $16 million in loans to former Trump campaign chairman Paul Manafort. They say he wanted a senior administration post in return.

Chief Magistrate Judge Debra Freeman set bail at $5 million, an amount agreed to by prosecutors and defense lawyers.

Freeman also warned Calk not to have contact with anyone at the bank, except for his brother. Prosecutors will submit an official list of bank employees he cannot contact by next week.

The bank says Calk's on a leave of absence with no involvement with the bank.

2:45 p.m.

A lawyer for a banker charged in New York with trying to issue loans to win a role in President Donald Trump's administration says his client has done nothing wrong.

Attorney Jeremy Margolis said in a statement Stephen Calk will be exonerated on the "baseless isolated charge" following the bank executive's arrest Thursday.

He was charged with a financial institution bribery charge.

Calk was CEO of Chicago's The Federal Savings Bank when allegedly approved $16 million in loans to former Trump campaign chairman Paul Manafort in the hopes of getting a senior post in Trump's administration.

The bank says in a statement it's not a party to the criminal case. It also says Calk is on a complete leave of absence and has no control over or involvement with the bank.

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10:30 a.m.

Federal prosecutors have charged a banker with trying to buy himself a role in President Donald Trump's administration by making risky loans to former Trump campaign chairman Paul Manafort.

Stephen M. Calk was arrested Thursday in New York City on a financial institution bribery charge.

He is scheduled to appear in Manhattan federal court in the afternoon.

A message seeking comment was left with his attorney.

Authorities said Calk committed the crime while serving as CEO of The Federal Savings Bank in Chicago.

Federal prosecutors described the charge in a release, saying Calk abused his bank position by approving millions of dollars in high risk loans that were ultimately downgraded.

Prosecutors say Calk wanted to be appointed Secretary of the Army or some other high level post.