WASHINGTON -- Riggs National Corp. and Riggs National Bank have entered into agreements with their respective regulators aimed at restoring long-term financial health.
The holding company agreed last week to file various reports with the Federal Reserve Bank of Richmond and notify it of dividend declarations and other expenditures. The agreement was in memorandum of understanding, the least severe of three levels of regulatory intervention.
Also last week, Riggs National Bank entered into a letter of agreement with the Office of Comptroller of the Currency, that regulator's second-most-severe action. The bank agreed to follow earlier recommendations of a management consultant, maintain capital levels such as a 10% risk-based ratio, and appoint a committee of directors to oversee compliance.
Riggs also said it will soon appoint a president and chief executive officer for the bank and will announce by midyear the outcome of an effort by Goldman Sachs & Co. to help "determine what role our U.K. subsidiary, the Riggs AP Bank, should play in a renewed and restructured Riggs."