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{{10-31-00 p.C-4365}}
   [11,414] In the Matter of American International Bank, Los Angeles, California, Docket No. FDIC 96-171 PCAS (5-16-97)

   American International Bank a seriously undercapitalized depository institution, failed to meet the Tier 1 capital ratio set by the FDIC by the specified date, so the FDIC has issued a supervisory prompt corrective action directive. (This order was terminated by order of the FDIC dated 8-11-00; see ¶16,261.)
In the Matter of

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

FDIC-96-171 PCAS

   American International Bank, Los Angeles, California ("Bank"), is a significantly 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 Corporation's ("FDIC") Rules and Regulations, 12 C.F.R. § 325.103. The Bank has filed three recent capital restoration plans, one on November 3, 1995, which the FDIC deemed unacceptable after the Bank failed to respond to requests for additional information; an amended plan on January 18, 1996, which the FDIC also deemed unacceptable; and an amended plan on May 2, 1996, which the FDIC accepted and which required the Bank to achieve a 6.75% Tier 1 capital ratio by June 30, 1996, but which the Bank has failed to meet. Based upon the FDIC's Report of Examination of the Bank as of May 20, 1996, the FDIC's review of the Bank's June 30, 1996, Call Report, and a limited scope visitation as of January 22, 1997, the Bank's Tier 1 leverage ratio is 2.78%, its Tier 1 risk-based ratio is 3.67%, and its total risk-based ratio is 4.96%. Accordingly, the Bank having received 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 308.210(a) of the FDIC Rules of Practice and Procedure, 12 C.F.R. 3008.21(a), and the Bank having failed to file a response to the NOTICE pursuant to Section 308.21(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, 12 C.F.R. § 308.201(d).

SUPERVISORY PROMPT CORRECTIVE
ACTION DIRECTIVE

   IT IS HEREBY DIRECTED, that the Bank shall sell enough voting shares of obligations of the Bank's stock on or before 45 days after the date of the issuance of this SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE so that the Bank's Tier 1 leverage capital ratio will equal or exceed 6.75% after the sale;
   FURTHER DIRECTED, that the Bank make all necessary arrangements to be acquired by a depository institution holding company or to combine with another 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. § 1812(c)(5); and
   FURTHER DIRECTED, that the Bank restrict the interest rates that the Bank pays on deposits to the prevailing rates of interest on 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 capital-{{10-31-00 p.C-4366}}ized 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.
   Pursuant to delegated authority.
   Dated at Washington, D.C., this 16th day of May, 1997.

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