Zohab rejoined the Richmond Fed in 1973 to manage hiring and training for the Supervision and Regulation Department, as well as to establish an internal audit review function. His group began working with the Board to develop educational programs, and some commercial banks took advantage. The Richmond Fed still answers that call, he says, helping banks to establish charters for the audit function, to develop proper reporting techniques, to organize workpapers, keep schedules and other important audit functions. In 1973, Zohab also began teaching at the Board of Governors School for Examiners, which he has continued to do each year. When the man at the top is blatantly stealing, everyone knows it and they start stealing, Zohab says.
Nobody can blow the whistle on anybody else.
The president didn't care if you stole, just so you didn't steal more than him. It becomes like a feeding frenzy, or a stealing frenzy. In the years after he rejoined the Fed, Zohab kept busy running his section, getting involved in particular cases and working with the Board on task forces on internal audit review procedures, white collar criminal investigations and other related areas. When the state received the Fed's findings, it immediately removed the executives of Old Court, which precipitated a run on the institution. After the run had been brought under control, the criminal investigation began.