A California bank's majority shareholder is infusing $6 million in new capital to help the bank turn itself around.
James T. Riady, who already owns 98% of Lippo Bank California, will own about 99% after he invests the additional capital, a bank spokesman said.
Along with Mr. Riady's infusion of capital, Lippo also announced this week that it was embarking on a program to slash $1.2 million in expenses this year.
"The cumulative effect of these actions is that Lippo will immediately be categorized by federal regulators as being 'well capitalized,'" said James E. Per Lee, president and chief executive officer of Lippo Bank.
Lippo, a $100 million-asset bank, is under a Federal Deposit Insurance Corp. cease-and-desist order to improve earnings, asset quality, and capital levels.
As part of its cost-cutting plan, the bank will eliminate 20 positions, some through early retirement, and will transfer some of its Los Angeles operations to its San Francisco office. The bank will sublet a portion of its headquarters building in Los Angeles.