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Friday, August 12, 2011

Fed Warns Bank Of The Eastern Shore

Federal banking regulators have ordered the troubled Bank of the Eastern Shore, which has two branches in Cambridge, to take steps to strengthen its financial position.

The Federal Reserve System directed the bank’s management either to sell shares or take other measures to make the bank adequately capitalized, or find a buyer or another financial institution to merge with. From Dec. 31, 2010 to June 30, 2011, the bank’s equity capital dropped from $10.9 million to $7.7 million, for a net loss of $3.2 million, according to regulators.

The bank has 60 days to comply with the order, which was issued on Thursday.


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