AmTrust cutting jobs amidst regulatory trouble

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AmTrust Bank says it will cut an undisclosed number of jobs as it tries to cope with a regulatory order to improve its finances.

Word of layoffs at the bank, which employs 2,700 in three states, comes a day after revelations that AmTrust has been ordered to increase its reserves and stop writing certain kinds of riskier mortgage loans, including those with no documentation required. Most banks nationwide stopped doing risky loans six to 12 months ago.

Meanwhile, the bank also is trying to raise money through outside investors.

If AmTrust doesn't comply with the formal order from the Office of Thrift Supervision, regulators could take steps such as changing the management or seizing the 119-year-old bank.

The bank hasn't yet completed plans for the job cuts, and affected employees have not yet been notified.

AmTrust is one of the nation's 15 largest mortgage lenders.

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