TierOne Corp. will have at least another
six weeks to strengthen its balance sheet, but federal regulators
have imposed even tighter rules on the Lincoln-based bank company.
TierOne said Friday it had agreed to a new set of rules imposed
by the federal Office of Thrift Supervision. TierOne failed to
improve its capital position before regulators’ May 31 deadline.
The bank, which holds about $2.8 billion in assets, has been
struggling under the weight of bad loans in areas of the country
hit hard by the subprime mortgage crisis. It has been under strict
scrutiny from regulators since early 2009.
TierOne must submit a capital-restoration plan to regulators by
July 15 that will spell out the bank’s plans through the end of
2011.
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Good news! As of this morning, Great Western Bank has purchased the entire TierOne Bank operation (not just the original 32 branches planned). So, all of the concerns should now be resolved.