Tuesday, September 27, 2011

FDIC hits Cape Fear Bank with cease and desist letter - Triangle Business Journal:

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The bank, formerly called the Bank of says the list of remedial actions was spelled out in a ceasse and desist order issued by the FDIC followingv an October2008 audit. The bank’sz release did not specify how much additionalo capital the lender will be requirexd to raise to satisfy As part of the cease and desist CapeFear (Nasdaq: CAPE) also was directec to strengthen its management team, a step the bank says was followingt the proxy fight launched by Burlingtonj textile executive and bank investor Maurice In November, Ralph Strayhorn, former chie f executive of Greensboro-based , was named Cape Fear CEO. In five new directors were appointed.
“The new board of directorsd and the new chief executive officer of the have been activelu engaged in responding to the concernsw raised inthe order,” the bank’s statement The bank's leadership also will have to deal with its plummetin stock. Cape Fear shares, already trading for under $1, lost almosty half of their value on Thursday aftee Cape Fear issued a release saying it had receivex the cease anddesist order. The stock price, whicy has reached as high as $10.14 over the past 12 closed Thursdayat 33.5 cents.

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