WASHINGTON — The Federal Reserve announced enforcement actions Friday against the South Financial Group Inc., moves to help maintain financial soundness at the company, according to the Fed order.
Under a written agreement, the Greenville, S.C.-based bank holding company cannot declare or pay any dividends without prior approval from the Fed.
South Financial owns and controls Carolina First Bank and other non-bank subsidiaries.
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, Carolina First.
South Financial must submit to Fed officials a written plan to maintain sufficient capital.