Cease & desist

    January 4, 2011

    Phoenixville Federal Bank and Trust was issued a cease and desist order last week from the federal Office of Thrift Supervision. The order says the Chester County bank has a high amount of troubled assets and has engaged in ineffective lending policies.

    While Phoenixville Federal CEO Richard A. Kunsch Sr. says the order is in response to commerical lending practices, he has agreed with the order to restrict commercial lending and hire three independent directors at the bank, according to the Phoenix.

    Phoenixville Federal has branches in Collegeville, Limerick, Phoenixville, Pikeland and Royersford

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