Nara Bancorp Inc. of Los Angeles said Monday that regulators had lifted an order imposed two years ago that had prevented it from appointing directors and changing the duties of its chief executive, among other things.
The $2.1 billion-asset Nara said that the Federal Reserve Bank of San Francisco and the California Department of Financial Institutions terminated a memorandum of understanding last week after examiners found that the company had strengthened its management, board oversight, and internal controls.
Nara agreed to the order in July 2005 after being forced to restate earnings for 2002 and 2003. Auditors had discovered that Nara had accounted improperly for a compensation package for Benjamin Hong, its former president and chief executive.
In February regulators allowed Nara to pay dividends and issue trust-preferred securities without prior approval, but the company still had to abide by other restrictions.
