Friday, October 29, 2010

FDIC declares First Vietnamese American Bank (FVAB) "critically undercapitalized" and ordered to sell shares or agree to a buyout

According to the Orange County Register the Federal Deposit Insurance Corp. has declared Westminster-based First Vietnamese American Bank "critically undercapitalized."

The FDIC ordered the bank to sell shares or agree to a buyout by another bank. The order, dated Sept. 28, was disclosed by the FDIC.

The FDIC order also directed the bank not to accept or renew any "brokered deposits" -- typically large deposits that move to whatever bank pays the highest interest -- and to pay no bonuses or raises to officers and directors without the government's permission. You can read the order http://www.fdic.gov/bank/individual/enforcement/2010-09-69.pdf

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