BEND, Ore. (AP) — Cascade Bancorp has filed a $427 million federal lawsuit against Cohen & Co. Financial Management of Philadelphia, claiming the investment firm has put the Oregon bank in danger of failing to meet regulator orders to raise capital.
Cascade Bancorp alleges that it reached tentative agreements in July with private investors to raise $150 million, part of the bank’s attempt to raise its capital levels to comply with a 2009 cease and desist order.
Cascade Bancorp says in the lawsuit filed in U.S. District Court in Eugene that investors told it to eliminate a liability it had with Cohen & Co.
But the bank claims Cohen & Co. won’t adhere to an agreement reached last October to liquidate that liability.
