WASHINGTON — The Federal Reserve announced enforcement actions Thursday against Coast Bancorp, a move to help maintain financial soundness at the company, according to the Fed order.
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Under a written agreement, the San Luis Obispo, Calif.-based bank holding company cannot declare or pay any dividends without prior approval from the Fed.
The firm, among other enforcements, also can't directly or indirectly take dividends or any other form of payment that would represent a reduction in capital from its bank subsidiary, Coast National Bank.
Coast Bancorp must submit to Fed officials a written plan to maintain sufficient capital.
