Landmark Curbed by Regulator As New Capital Plan Is Rejected
PITTSBURGH -- Landmark Savings Association said the Office of Thrift Supervision has declared its amended capital plan unacceptable. The OTS terminated its earlier approval of Landmark's original capital plan and ended prior exemptions from capital rules.
The Pittsburgh-based company, which has $1.5 billion in assets, said the OTS was not satisfied with the "manner and timing by which Landmark proposed to achieve and maintain minimum capital levels."
The regulator's action prohibits the thrift from increasing its assets and conducting certain other business.
Waivers for Some Activities
Landmark said it has received temporary waivers permitting it to continue its mortgage banking activities and "substantially all" of its consumer services, including residential mortgages. The waivers expire June 15 unless Landmark consents to a specific capital directive.
The proposed directive calls for Landmark to comply with capital minimums in the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 by Dec. 31 and restrict growth and officer compensation. It also requires prenotification of the reelection and reappointment of senior executives and directors, and periodic submission and reporting of a budget.
Landmark said it plans to have discussions with the OTS and hopes to reach an agreement allowing some flexibility. But the company said it has no commitments from any third parties to provide additional capital sources.
Landmark's risk-adjusted capital ratio was 5.77% at year-end 1990, well below the 7.2% of assets required then and the 8% that takes effect at the end of 1992.