Fed Takes Enforcement Action Against Georgia, Oregon Banks
02 Août 2010 - 5:29PM
Dow Jones News
Citizens Effingham Bancshares Inc. of Springfield, Ga., can't
pay dividends without approval from regulators and must take steps
to improve its financial soundness after the U.S. Federal Reserve
took enforcement action against the bank Monday.
Under an agreement with the Fed, Citizens Effingham and its one
nonbank subsidary also can't make any distributions of interest,
principal or other sums on subordinated debentures or trust
preferred securities without the Fed's approval.
Separately, the Fed also took enforcement action Monday against
Oregon Pacific Bancorp, a bank holding company, and its bank
subsidary Oregon Pacific Bank. Under the agreement with the Fed,
the Florence-based bank has 60 days to come up with a plan to
strengthen board oversight and reduce the risk posed by a high
concentration of commercial real estate in its portfolio, among
other things.
The agreement gives Oregon Pacific 10 days to wipe off its books
all assets deemed losses by regulators. It also can't pay dividends
without Fed approval.
-By Victoria McGrane, Dow Jones Newswires; 202-862-9267;
victoria.mcgrane@dowjones.com.