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Fed Gives Calif's San Joaquin Bank Deadline To Shape Up



WASHINGTON -(Dow Jones)- The Federal Reserve has ordered a California bank to take steps within the next 10 days to make itself adequately capitalized.

The Fed said Monday that San Joaquin Bank, of Bakersfield, was undercapitalized. The bank's parent is San Joaquin Bancorp (SJQU).

The Fed ordered San Joaquin Bank to raise equity, enter into a contract to be taken over, or take other necessary measures no later than Oct. 15.

The lender cannot pay dividends, the Fed said. It also cannot accept deposits carrying an excessive interest rate without Fed approval.

-By Jeff Bater, Dow Jones Newswires; 202 862 9249; jeff.bater@dowjones.com


  (END) Dow Jones Newswires
  10-05-091115ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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