NCAL Bancorp in Los Angeles and Raton Capital in New Mexico have been hit with enforcement orders from the Federal Reserve Board that require them to stabilize their ailing bank subsidiaries.
NCAL is the parent of the $383 million-asset National Bank of California in Los Angeles and Raton is the holding company for the the $309 million-asset International Bank in Raton. Both banks were slapped with cease-and-desist orders from their primary regulators that require them to clean up their loan portfolios and limit their risks.
The Fed actions made public Thursday order the holding companies to serve as sources of strength for their banks and prohibit theme from paying dividends, taking on new debt or hiring executives without written approval from the Fed.
