Fed Imposes Orders Against Four Banks

Four bank holding companies have entered into written agreements with the Federal Reserve.

On Tuesday, the Fed reported the formal actions it took against $242 million-asset American Bancorp. of Minnesota Inc. in Baxter, $1.2 billion-asset Eastern Virginia Bankshares Inc. and its EVB bank unit in Tappahannock, $1.5 billion-asset Marquette Financial Cos. in Minneapolis and $541 million-asset National Bancorp Inc. in Schaumburg, Ill.

The orders require the companies to serve as sources of strength to their banks and bar the companies from paying dividends to shareholders. Except for American Bancorp., the orders require plans to stay well capitalized. The Fed told Eastern Virginia Bankshares to improve board oversight and revise written lending and credit administration policies, among other things.