Federal regulators say SouthwestUSA Bank’s financial condition deteriorating

Federal regulators on Friday disclosed a serious enforcement action taken against SouthwestUSA Bank of Las Vegas, noting that the bank's financial condition is deteriorating.

The Federal Deposit Insurance Corp. directive to take "prompt corrective action" explained that the $214 million bank was notified in November that it was undercapitalized. SouthwestUSA submitted a capital restoration plan, but the FDIC directive said the plan was unacceptable.

"The bank's unacceptable capital plan and deteriorating condition and management's inability to return the bank to a safe and sound condition require that prompt corrective action be taken immediately," the FDIC stated in the directive signed by J. George Doerr, deputy regional director, on May 7.

Attempts to reach executives at the bank were unsuccessful.