St. Louis Public Radio News
7:38 am
Fri September 4, 2009

Fed restricts banks owned by Missouri company

Jefferson City, Mo. – The Federal Reserve has imposed restrictions on two banks owned by Midwest Independent Bancshares Inc. of Jefferson City.

The agreements released Thursday put limits on the Nebraska Bankers' Bank of Lincoln and Midwest Independent Bank of Jefferson City.

Those banks provide banking services for roughly 550 financial institutions throughout the Midwest.

Regulators want the banks to develop stronger credit risk standards, adopt comprehensive ethics policies, improve capital reserves and draft realistic budgets.

A Federal Reserve spokesman declined to comment on the restrictions. And officials with Midwest Independent and state regulators did not immediately respond to messages Thursday.