FDIC Sends Warning To Lexington Bank

A Lexington bank is told to shore up its lending practices and do a better job of collecting past due loans.

Bank of the Bluegrass says the FDIC issued a cease and desist order against it after past due loan payments quadrupled.

The Herald Leader says the order claims Bank of the Bluegrass failed to get proper loan documentation, didn't insist on scheduled loan repayments and didn't adequately supervise its operations.

The order does not affect day to day operations at the almost 200 million dollar bank.

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  • by Zatoichi Location: Richmond on Jul 30, 2008 at 01:24 PM
    Somebody needs to send a warning to Congress to stop initialing laws to make more loans available to folks who can't qualify for a mortgage to begin with.
  • by Larry Location: Lexington on Jul 29, 2008 at 02:41 PM
    Check out the Home Builders, with the bank.


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