OMAHA, Neb. (AP) – Federal regulators have blocked Lincoln-based TierOne Bank’s proposed sale of 32 branches.
The federal Office of Thrift Supervision on Friday denied the proposal, saying the sale would leave the bank in worse financial straits.
It was unclear what would happen to the bank as a result of the denial.
TierOne spokesman Ed Swotek didn’t immediately return a message left late Friday.
Friday was the deadline for TierOne to find an investor, buyer or merger partner.
Last month, federal regulators rejected TierOne’s plan to improve its balance sheet. They ordered the bank to have an agreement to improve its capital position by the end of April, and that the bank must receive an infusion of funds by the end of May, unless regulators extend the deadlines.
