Fed Announces Enforcement Action Against Irwin Financial Corp
16 September 2009 - 4:55PM
Dow Jones News
The U.S. Federal Reserve Wednesday announced an enforcement
action against Irwin Financial Corporation (IFC) in effort "to
correct certain deficiencies" at the banking holding company.
Under the cease and desist order, Irwin must take steps to
ensure that its subsidiary bank, Irwin Union Bank, is functioning
in a safe and sound manner.
For instance, the order calls on Irwin to meet certain capital
guidelines. The firm must maintain a consolidated total risk-based
capital ratio of at least 11% by the end of the month and achieve a
total risk-based capital ratio of at least 12% by the end of the
month as well.
Additionally, the bank holding firm has 10 days to submit a plan
to the Fed to reduce Irwin Union Bank's reliance on wholesale
deposits.
Also, Irwin and the bank cannot sell or dispose of any asset
without prior approval from the Fed, according to the order.
The Fed said Irwin and its banking unit failed to fully comply
with an October 2008 written agreement between the holding company,
the bank and the Federal Reserve Bank of Chicago. That agreement
was designed to correct certain deficiencies "relating to safety
and soundness," the central bank said in the order.
Irwin is an Indiana based firm that provides a broad range of
banking services to small businesses and consumers in the Midwest
and Southwest.
-By Maya Jackson Randall, Dow Jones Newswires; 202-862-9255,
maya.jackson-randall@dowjones.com