The FDIC Enforcement Decisions and Orders (ED&O) contains the full text of the formal enforcement actions against financial institutions that are regulated by the FDIC or against their affiliated parties. The ED&O is updated on a monthly basis.
The third order to Cease and Desist issued by the FDIC to First Vietnamese American Bank was issued on 05/13/2010 (8 pages long) in addition to the second order just 15 months earlier. The second order to Cease and Desist (15 pages long) issued by the FDIC to First Vietnamese American Bank was issued on 01/29/2009 just 25 months after the first Cease and Desist issued by the FDIC to First Vietnamese American Bank on 12/22/2006. The Bank, by and through its duly elected and acting Board of Directors (“Board”), has executed a Stipulation to the Issuance of a Consent Order (“Stipulation”), dated May 13, 2010, that is accepted by the FDIC. With the Stipulation, the Bank has consented, without admitting or denying any charges of unsafe or unsound banking, to the issuance of this Consent Order (“Order”) by the FDIC pursuant to Section 8(b)(1) of the FDI Act. The FDIC ordered that http://www.fdic.gov/bank/individual/enforcement/2010-05-05.pdf
Sounds like First Vietnamese American Bank will soon join other failed banks on the FDIC failed bank list. The longer the FDIC waits to take over banks destined to fail, the less it will cost the tax payer in the long run.
ReplyDeleteIts amazing how much politics are involved in the FDIC taking over a bank. Because this is the first Vietnamese bank in little Saigon in Orange County, California, the FDIC is dragging its feet and delaying the inevitable closure of this failed bank. It looks bad for the community. But a bank is just like any other business and many banks fail because they are bad at conducting business. So the faster the FDIC takes it over, the better it is for the community. Slow death is torture to the community, the customers, the employees and the neighbors.
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