The Federal Reserve has ordered First American International Corp. to serve as a source of strength to its Brooklyn, N.Y., bank.
The Fed reached a written agreement on March 18 with the company, barring it from paying dividends or paying interest or principal on debt without regulatory approval. First American has 30 days to provide the Fed with a written plan to "maintain sufficient capital."
The $588 million-asset First American International Bank signed a consent order with the Federal Deposit Insurance Corp. in December.
