Each depositor insured to at least $250,000 per insured bank



Home > Regulation & Examinations > Bank Examinations > FDIC Enforcement Decisions and Orders




FDIC Enforcement Decisions and Orders

ED&O Home | Search Form | Text Search | ED&O Help


{{10-31-00 p.C-3965}}
   [11,146] In the Matter of Brentwood Bank of California, Los Angeles, California, Docket No. FDIC-94-120PCAS (3-6-95).

   FDIC issues Supervisory Prompt Corrective Action Directive ordering bank to raise capital. (This order was terminated by order of the FDIC dated 8-10-00; see ¶16,260.)

   [.1] Capital—Increase—Sale of Shares
   [.2] Capital—Increase—Sale of Bank
   [.3] Deposits—Interest Paid—Prevailing Rates

In the Matter of

BRENTWOOD BANK OF
CALIFORNIA

LOS ANGELES,CALIFORNIA
(Insured State Nonmember Bank)
SUPERVISORY PROMPT
CORRECTIVE ACTION DIRECTIVE

FDIC-94-120PCAS

   Brentwood Bank of California, Los Angeles, California ("Bank"), being an undercapitalized depository institution as that term is defined in section 38(b)(1) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1831o(b)(1), and section 325.103 of the Federal Deposit Insurance Corporations's ("FDIC") Rules and Regulations, 12 C.F.R. § 325.103, having filed four capital plans, one on March 16, 1994, another on May 12, 1994, another on July 11, 1994, and the other on September 16, 1994, all of which were deemed inadequate primarily because the sources of proposed capital injections were not deemed to be either committed to injecting the capital or having the financial capacity to do so, based upon the FDIC's Report of Examination of the Bank as of November 5, 1993, which shows its capital levels to be at a 3.98 Tier 1 capital ratio, a 3.98 adjusted Tier 1 capital ratio, and a 7.68 total risk-based capital ratio, and having received a NOTICE OF INTENT TO ISSUE A SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE ("NOTICE") detailing the actions which will be required to be taken by the Bank and/or the proscriptions which will be imposed on the Bank pursuant to section 38 of the Act, 12 U.S.C. § 1831o, and section 308.201(a) of the FDIC Rules of Practice and Procedure, 12 C.F.R. § 308.201(a), and the Bank having failed to file a response to the NOTICE pursuant to section 308.201(c) of the FDIC Rules of Practice and Procedure, 12 C.F.R. § 308.201(c), the FDIC hereby issues this SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE pursuant to the provisions of section 38 of the Act, 12 U.S.C. § 1831o, and section 308.201(d) of the FDIC Rules of Practice and Procedure and Regulations, 12 C.F.R. § 308.201(d).

SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE

   [.1] IT IS HEREBY DIRECTED, that the Bank shall raise, at a minimum, $4,200,000 of capital through the sale of Bank stock, such stock must possess voting rights.

   [.2] FURTHER DIRECTED, that the Bank accept an offer to be acquired by another depository institution holding company or insured depository institution, if notified in writing by the FDIC, that one or more grounds exist for appointing a conservator or receiver for the Bank under section 11(c)(5) of the Federal Deposit Insurance Act, 12 U.S.C. § 1821(c)(5).
   FURTHER DIRECTED, that the Bank comply with Section 23A of the Federal Reserve Act as if subsection (d)(1) of that section (exempting transactions with certain affiliated institutions) did not apply.

   [.3] FURTHER DIRECTED, that the Bank restrict the interest rate the Bank pays on deposits to the prevailing rates of interest on {{10-31-00 p.C-3966}}deposits of comparable amounts and maturities in the region where the Bank is located.
   FURTHER DIRECTED, that this SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE shall become effective immediately upon its receipt by the Bank.
   Each provision of this SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE shall be binding upon the Bank, its directors, officers, employees, agents, successors, assigns, and other institution-affiliated parties of the Bank.
   Each provision of this SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE shall remain effective and enforceable until the Bank has been adequately capitalized on average for four (4) consecutive calendar quarters, except to the extent that any provision shall be modified, terminated, suspended, or set aside by the FDIC.
   Dated at Washington, D.C., this 6th day of March, 1995.
   Pursuant to delegated authority.

ED&O Home | Search Form | Text Search | ED&O Help

Last Updated 6/6/2003 legal@fdic.gov