FDIC’s Hammer Comes Down on Banks

Five California banks have received orders from the Federal Deposit Insurance Corp. to make a variety of changes. These orders come off the back of increasing public pressure for transparent business practices, especially in the wake of the economic crisis.
 
California has been hit especially hard by the softening economy and this development emphasizes the fact that the troubled state will have to make concessions. The orders from the FDIC include mandates for stricter lending policies, different management, and even new capital.
 
Of the 24 such orders issued across the country, California received about a fifth of them, but the effected banks are as varied as they are widespread. Several of the banks had already been on the road to complying with the FDIC orders when the economic situation collapsed. For the banks still struggling to adapt to the FDIC’s terms, time may be running short.

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