Nara Bancorp Inc.'s stock fell nearly 9% Friday, a day after the Los Angeles company disclosed that it would be forbidden from paying dividends without approval from regulators.
This year Nara was forced to restate its earnings for 2002 and 2003 after auditors discovered it had improperly accounted for a compensation package for its former president and chief executive officer, Benjamin Hong.
The accounting problems also forced Nara to delay the filing of its 2004 annual report with the Securities and Exchange Commission.
On Thursday, Nara revealed in an SEC filing that it has agreed to a memorandum of understanding with regulators that prohibits it from appointing directors, changing the duties of its CEO, or paying dividends without the blessing of the Federal Reserve Bank of San Francisco and the California Department of Financial Institutions.
Later that day Nara reported record second-quarter earnings, but that did not prevent the stock from declining 3.5% that day. On Friday the stock closed at $13.67 a share.
