Determining that Barnes Banking Co. of Kaysville, Utah, is "critically undercapitalized," the Federal Reserve Board said Monday that the company should issue new shares or sell itself to another depository institution by Friday.
The "prompt corrective action" order specifies an unusually fast timetable for the $827.8 million-asset Barnes. A similar order on Jan. 4 gave Sun American Bank of Boca Raton, Fla., 45 days to raise more equity or sell itself.
The Fed struck an written agreement with Barnes on May 13 that required it to provide the central bank with a plan that would toughen board oversight and credit risk management oversight.
