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Article: In Brief: FDIC Orders Fremont to Manage Risk Better.(Federal Deposit Insurance Corp.)(Fremont General Corp. and Fremont Investment and Loan)
- Article from:
- American Banker
- Article date:
- March 9, 2007
- Author:
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The Federal Deposit Insurance Corp. released a cease-and-desist order late Wednesday against a California industrial loan company and its parent, and the lender sought to dispel notions that a sale of its subprime unit was imminent.
The order gave Fremont General Corp. and its subsidiary Fremont Investment and Loan 90 days to fix risk management policies in its real estate lending division, and it required the company to mend capital and management problems.
Among other things, the order requires the $13 billion-asset bank, the state's largest ILC, and its parent to underwrite teaser-rate loans at the fully indexed rate -- a standard federal regulators ...