FDIC acts against Westbridge Bank in Chesterfield
The Federal Deposit Insurance Corp. has ordered Westbridge Bank & Trust stop unsafe practices, improve its management and raise its capital.
The government regulator issued "cease and desist" order against the bank, accusing the bank of "unsafe and unsound" practices. Such orders are issued when regulators find serious problems at a bank.
Westbridge, based in Chesterfield, has $129 million in assets, ranking it tiny by banking standards. It lost $3 million last year, according to reports the bank filed with regulators.
In an order released today, the FDIC told the bank’s management to stop bad lending practices and engaging in "hazardous credit underwriting payday loans with no fax." The board of directors failed to adequately supervise management, the federal agency said in its order.
The bank was also told to stop violating Missouri’s limits on lending.
The government forbade the bank from raising management salaries, paying bonuses or dividends without government permission. It ordered the bank to raise its capital level. Capital is a cushion of owners’ money in the bank which can absorb losses and prevent the bank from failing.
jgallagher@post-dispatch.com | 314-340-8390
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