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Article: 3 more community banks hammered; The Minnesota institutions got cease-and-desist orders and were ordered to clean up balance sheets and raise more capital.(BUSINESS)
- Article from:
- Star Tribune (Minneapolis, MN)
- Article date:
- September 26, 2009
- Author:
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Byline: CHRIS SERRES; STAFF WRITER
Three more Minnesota banks were ordered by regulators to clean up their lending practices and raise fresh capital, as loan losses continue to erode banks' balance sheets.
Community Security Bank of New Prague, First Resource Bank of Savage and Security State Bank of Lewiston were all issued cease-and-desist orders last month by the Federal Deposit Insurance Corp. that were made public Friday morning.
The rash of enforcement actions are another indication that a number of smaller community banks may not have anticipated the severity of the current financial crisis, and failed to put away enough money to absorb ...