SFI » Topics » Order to Cease & Desist:

These excerpts taken from the SFI 8-K filed Sep 18, 2007.

Order to Cease & Desist:

On March 7, 2007, FIL consented to the Order to Cease & Desist (“Order”) issued by the FDIC without admitting to the allegations contained in the Order. The Order calls for, among other things, certain changes in FIL’s commercial real estate lending business. In particular, the Order (i) limits FIL’s ability to extend credit to certain commercial real estate borrowers and (ii) requires the implementation of a written lending and collection policy to provide effective guidance and control over FIL’s commercial real estate lending function, including a planned material reduction in the volume of funded and unfunded non recourse lending and loans for condominium conversion and construction as a percentage of Tier 1 capital. In addition, the Order requires that FIL adopts a Capital Adequacy Plan to maintain adequate Tier 1 capital in relation to the risk profile of FIL. Further, the Order mandates various specific management requirements and enhanced oversight over FIL’s operations. FIL cannot predict the cost of compliance with the Order or the impact of the Order upon FIL’s business, financial condition or results of operation.

Order to Cease & Desist:

On March 7, 2007, FIL consented to the Order to Cease & Desist (“Order”) issued by the FDIC without admitting to the allegations contained in the Order. The Order calls for, among other things, certain changes in FIL’s commercial real estate lending business. In particular, the Order (i) limits FIL’s ability to extend credit to certain commercial real estate borrowers and (ii) requires the implementation of a written lending and collection policy to provide effective guidance and control over FIL’s commercial real estate lending function, including a planned material reduction in the volume of funded and unfunded non recourse lending and loans for condominium conversion and construction as a percentage of Tier 1 capital. In addition, the Order requires that FIL adopts a Capital Adequacy Plan to maintain adequate Tier 1 capital in relation to the risk profile of FIL. Further, the Order mandates various specific management requirements and enhanced oversight over FIL’s operations. FIL cannot predict the cost of compliance with the Order or the impact of the Order upon FIL’s business, financial condition or results of operation.

EXCERPTS ON THIS PAGE:

8-K (2 sections)
Sep 18, 2007

"Order to Cease & Desist:" elsewhere:

CIT Group Inc (CIT)
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