Federal Reserve Lifts Supervisory Agreement With Troy’s Flagstar Bancorp

1239

Troy-based Flagstar Bancorp Inc. has announced that the Federal Reserve has lifted its Supervisory Agreement with the company, effective Aug. 14.

The agreement was originally dated Jan. 27, 2010 and included provisions, including requirements to submit a capital plan annually and receive written non-objection from the Fed before paying a dividend or repurchasing stock, incurring or renewing holding company debt, or engaging in affiliate transactions.

“This is a major milestone for our company, representing the last major regulatory issue with the old Flagstar,” says Alessandro P. DiNello, president and CEO of Flagstar Bank. “This action reflects our successful effort in building a strong financial institution that can deliver solid results within the framework of a strong risk and compliance structure. The lifting of the agreement ushers in a new era for our holding company, providing more flexibility in entering into strategic transactions.

“It’s been a long road to reach this positive outcome. I would like to personally thank the entire Flagstar team for their dedication and our shareholders for their support. I also appreciate the Fed’s collaboration over the past several years to strengthen our company. We are now focused on continuing our journey to build a great company.”

Flagstar is an $18.1 billion savings and loan holding company. It provides commercial, small business, and consumer banking services through 107 branches in Michigan and California.

Facebook Comments