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AMERICAN FOUNDERS BANK HAS BEEN ORDERED BY THE F.D.I.C TO MAKE SUBSTANTIAL CHANGES IN ITS MANAGEMENT PRACTICES. AMERICAN FOUNDERS HAS BRANCHES IN SHELBYVILLE, FRANKFORT AND LEXINGTON.
ACCORDING TO AN ORDER FILED IN FEBRUARY, AMERICAN FOUNDERS MANAGERS WERE ACCUSED OF JEOPARDIZING THE BANK'S DEPOSITS, FAILING TO KEEP ACCURATE BOOKS AND FAILING TO HAVE ENOUGH LIQUIDITY.

A SPOKESMAN FOR THE BANK TOLD THE LEXINGTON HERALD-LEADER THAT RAPID GROWTH AND A 38-MILLION DOLLAR PURCHASE OF ANOTHER BANK PROMPTED THE PROBLEMS. TOMMY PRESTON SAYS AMERICAN FOUNDERS IS CHANGING ITS PRACTICES AND HIRED A NEW C-E-O. A spokesperson for the state Office of Financial Institutions says American Founders has not been shut down. But as part of the order to cease and desist, state regulators will be keeping a watchful eye on the bank, to make sure it follows through with the promised improvements.

THE BANK'S BOARD OF DIRECTORS READS LIKE A WHO'S WHO OF BLUEGRASS POLITICS WITH BRERETON JONES, TRACY FARMER AND CLAY PATRICK AMONG THEM.