EuroBancshares has agreed to take certain actions that are designed to maintain its financial soundness of its subsidiary, Eurobank
EuroBancshares, a Puerto Rico-based diversified bank holding company, has entered into an agreement with the Federal Reserve Bank of New York, effective September 30, 2009.
Reportedly, under the terms of the agreement, EuroBancshares has agreed to take certain actions that are designed to maintain its financial soundness so that it may continue to serve as a source of strength to its subsidiary, Eurobank. Among other things, the written agreement requires prior written approval related to the payment of dividends and distributions, incurrence of debt, and the purchase or redemption of stock. In addition, the written agreement requires EuroBancshares to submit an acceptable capital plan and maintain regular reporting to the Federal Reserve during the term of the agreement.
Rafael Arrillaga-Torrens, Jr., president and CEO of EuroBancshares and Eurobank, said: “Our agreement with the Federal Reserve is consistent with the steps that we have already taken, or are in the process of implementing, to address many of the challenges that we have encountered during the past year. We continue our efforts to make strides during these difficult economic times and will continue to work within the framework of our Federal Reserve agreement to make further improvements to our financial condition over the next several quarters.”