OCC Places Restraints on Holtz's Bank
WASHINGTON - Capital Bank of Washington, one of three institutions owned by Miami banker Abel Holtz, has agreed to stop paying dividends without prior approval from the Office of the Comptroller of the Currency.
The bank also agreed to undertake a study of its current management practices, to raise its Tier 1 capital ratio to 6% by Sept. 30, and to stop taking brokered deposits.
Though Capital Bank entered into the agreement on April 30, the Comptroller's office did not disclose the details until last month.
The $98 million-asset bank lost $1.6 million in 1990 and posted a negative 0.22% return on assets. Capital Bank officials in Miami and Washington could not be reached for comment.
Mr. Holtz, the chairman, is a well-known Miami banker who immigrated to the U.S. from Cuba in the early 1960s. Mr. Holtz got a Washington banking foothold in 1981 by acquiring a majority interest in the troubled Hemisphere National Bank.
He is also chairman of Capital Bancorp of Miami, with $1 billion in assets, and Los Angeles-based Capital Bank of California, with $273 million in assets.