Bank must raise more capital
July 6, 2009
By MoneyAisle
Trading Markets reports that a bank in Flagstaff has received orders from federal regulators to improve upon its delinquent loan portfolios and increase its capital.
“First State Bank of Flagstaff received a cease and desist order from the Federal Deposit Insurance Corporation for ‘operating with a large volume of poor quality loans’ and ‘operating with an inadequate loan valuation reserves.’ The FDIC order contends the privately held bank had policies and practices that jeopardized the safety of its deposits and that its governing board failed to give adequate supervision to the bank.”
In the past month, the FDIC has issued 24 of these types of orders.