By Hanah Cho, The Baltimore Sun
6:20 PM EDT, November 3, 2011
Baltimore's CFG Community Bank and its parent company, Capital Funding Bancorp, have agreed to a consent order with state and federal bank regulators to shore up their corporate governance and management review processes.
Under the order released Thursday, Capital Funding agreed to hire a consultant acceptable to the Federal Reserve Bank of Richmond and the Maryland Commissioner of Financial Regulation to review the bank's corporate governance and board and management structure. Capital Funding is required to address findings in the consultant's report.
The bank also agreed to have a majority of its board of directors be independent members. Other stipulations include revising its allowance for loan losses and developing a strategic plan for 2012.
In 2009, Capital Funding bought Towson-based AmericasBank Corp., which had been under intense government supervision after struggling with losses in its mortgage-lending business.
CFG Community Bank has a branch each in Baltimore, Towson and Annapolis.
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