Recent regulatory actions against banks and bankers
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The Federal Deposit Insurance Corp. is out with its list of enforcement actions taken in February against banks and bankers, two of which involve Los Angeles.
A consent order was issued against Open Bank of downtown L.A., which was founded in 2005 as First Standard Bank with a focus on multi-ethnic communities. The FDIC told Open Bank to improve its compliance with consumer protection laws; the bank consented to the order without admitting or denying any wrongdoing.
The FDIC also barred Julia L. Wiley from working for federally insured banks. Without providing details, the agency cited her actions at Security Pacific Bank -- not the former L.A. banking giant but a West L.A. community bank that regulators closed in November 2008. Wiley agreed to the order ‘without admitting or denying any violations, unsafe or unsound banking practices, and/or any breaches of fiduciary duty,’ the FDIC said.
Other recent bank enforcement actions include:
--The Office of Thrift Supervision this month ordered Palm Desert savings and loan Frontier Community Bank to raise capital, improve earnings and clean up its portfolio of soured loans. In a simultaneous order against Frontier’s holding company, Western Community Bancshares, the OTS restricted dividend and ‘golden parachute’ payments, barred the issuance of new debt and asked for a report on possible candidates to take over the S&L. Frontier recently moved its headquarters from Park City, Utah, to Palm Desert.
--The U.S. Comptroller of the Currency last month ordered Coast National Bank of San Luis Obispo to develop a strategic plan. Among other things, Coast is supposed to restore earnings and provide adequate capital and liquidity.
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--E. Scott Reckard
