The Federal Reserve Board and the New York State Banking Department took supervisory action Monday against Banco Atlantico SA of Barcelona, Spain, and its U.S. affiliate.

Under a cease-and-desist order, the bank agreed to strengthen management, employee training, record keeping, and internal controls at its New York agency.

Banco Atlantico must hire an independent consultant to help beef up its management structure. A new audit and compliance plan are due within 30 days.

"We are cooperating fully with the regulators," said Sheila M. Donovan, senior vice president of Banco Atlantico's New York agency. "We are fully committed to getting all the issues in the order addressed and resolved as quickly as we possibly can."

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