Tuesday, March 19, 2013

Fed Issues Order Against Devon Bancorp in Illinois

Editor's note: Your ProbateShark heard a swirl in the shark tank that the Devon Bank was  allegedly involved with the Judicial-Nursing Home Complex.  At least the FEDs are looking into the goings on and I'm sure will check out Devon Bank with care.  It is a good beginning. Lucius Verenus, Schoolmaster, ProbateSharks.com
 
Fed Issues Order Against Devon Bancorp in Illinois
MAR 19, 2013 1:57pm ET
The Federal Reserve Board has taken action against a Midwest banking company.
The Fed said Tuesday that it has reached a written agreement with Devon Bancorp in Chicago. The company agreed to refrain from paying dividends, distributing capital or redeeming stock without regulatory approval. It will also provide written details about its sources and uses of cash.
The parent of the $240 million-asset Devon Bank also agreed to serve as a source of strength for the bank and to provide the Fed with quarterly progress reports.
Separately, the Fed terminated a written agreement with Bank VI in Salina, Kan., that obligated the bank to provide a written plan for maintaining sufficient capital and strengthening board oversight of its operations.
The July 2010 agreement also required the $65 million-asset bank to strengthen its credit risk management practices, to reduce concentrations of credit, to improve management of its funds and to hire an outsider to review its loan portfolio.
Bank VI also agreed to refrain from lending to any borrower that had loans flagged by examiners during a January 2010 examination. The bank was also required to improve its position in connection with past-due loans in excess of $250,000 and to eliminate losses that it had not already charged off.
The Fed took both actions on March 13 and announced them on Tuesday

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