First Marblehead bank runs afoul of regulators - San Antonio Business Journal:

http://www.gite-posada.com/pommevic.html
That’s according to a ceasr and desist order issuer against bythe , a federal bank First Marblehead (NYSE: FMD), whose key business of packagingt student loans into securities has dried up, now faces the prospect of pumping million of dollars of capital into the small Rhodse Island bank to bolster its capital. The OTS order says Firsg Marblehead is required to maintaina $30 milliomn deposit at the bank until it is sold or the bank’ s concentration of private student loans is reduced to 50 percengt of Union Federal’s plus any allowance for loan First Marblehead also needs OTS approval befors making any golden parachute payments to senior executives, according to the ceaser and desist order.
Union Federal Savings Bank’s problems have been chroniclee in previous stories by the BostonBusiness Journal. Before being acquired by Firsy Marblehead, Union Federal Savings had about $40 milliohn in assets. But that balance sheet ballooned to morethan $600 milliomn last year as First Marblehead movee some $500 million in risku private student loans onto the bank’s balancer sheet. The bank has been unsuccessful in sellinf those loans while an escalating number of defaults have triggeredlargw losses. In the first quarter, for the North Providence-based bank lost $26.4 according to federal bank filings.