More banking companies are stacking up missed payments on their preferred shares held by the federal government, according to a Treasury Department report released Friday.
Sixteen participants in the Troubled Asset Relief Program had missed four payments, and eight have missed five payments as of May 31. That was up from 11 recipients missing four payments and one missing five as of March 31, the last time the Treasury reported the figures.
Only one bank, the $70 million-asset Saigon National Bank in Westminster, Calif., had missed six consecutive payments. It received $1.55 million of Tarp funds in December 2008. The Tarp rules give the Treasury the ability to appoint two directors to the bank's board.
The company's executives have said that the Office of the Comptroller of the Currency has prohibited the bank from making the payments. Though well-capitalized, Saigon is dealing with significant credit issues. At March 31, noncurrent loans made up 13.34% of its total loans.
