US Fed orders Royal Bancshares dividend halt

WASHINGTON, March 25 Thu Mar 25, 2010 11:23am EDT

WASHINGTON, March 25 (Reuters) - The Federal Reserve said on Thursday it ordered Royal Bancshares of Pennsylvania Inc (RBPAA.O), the parent of Royal Bank America and Royal Asian Bank, to halt payment of dividends.

The Fed said the actions were part of a written agreement between Royal Bancshares of Pennsylvania Inc and the Federal Reserve of Philadelphia.

The bank will also have 60 days to submit a plan to improve its capital base, taking into account allowances for loan and lease losses, concentration of credit, and projected retained earnings, the Fed said.

Royal Bancshares of Pennsylvania is based in Narberth, Pennsylvania. (Reporting by Nancy Waitz, Editing by Chizu Nomiyama)

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