Miami based Gulf Bank has been under a cease and desist order from the Federal Reserve and the Florida Department of Banking and Finance since November 2001.
Gulf Bank made US$648,000 in 2001, but lost US$667,000 last year, according to its reports to the Federal Deposit Insurance Corp. (FDIC). The loss was primarily from charges related to a factoring business and to costs of administering new systems, Assalone said.
Regulators told Gulf Bank to improve its systems for complying with money-laundering related laws, although they cited no violations, and for identifying problem loans.
Gulf Bank has set up those systems, hired extra bankers to administer them and is using consultants to help maintain the systems, said James Assalone, the bank's president and CEO since last October.
Gulf Bank has about US$100m in assets.
