DNC Donor Pumps More Cash Into Bank
From Times Staff and Wire Reports
James Riady, the Indonesian tycoon whose support of President Clinton is now a subject of numerous federal investigations, has injected an additional $6 million into his Los Angeles-based bank to satisfy federal regulators. Riady’s LippoBank of California also announced that it will trim its work force and will dispose of “a group of nonperforming real estate loans,” in an effort to reduce the bank’s annual overhead by about $1.2 million. LippoBank is operating under a regulatory sanction issued last month by the Federal Deposit Insurance Corp. Under terms of the FDIC’s order, the bank was given until June 29 to increase its equity capital. The additional capital will improve the bank’s ability to absorb losses.
