This week the Federal Reserve announced that it had signed an agreement with First Regional Bancorp that would limit its ability to distribute or borrow money. 
The company – which is based in Century City – now must get approval from the Federal offices in San Francisco before paying dividends or taking on new debt. The Fed claims it made this rule to help “maintain the financial soundness” of the bank.
The banks caters to small and mid-size businesses and had nearly $2.5 billion in assets at the end of last year. In June First Regional Bancorp had nearly $87 million in deposits at its regional branch located in Irvine.
It will be interesting to see if the Federal Reserve begins to create more agreements of this nature.
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