The Federal Reserve Board has terminated enforcement actions against TCSB Bancorp in Traverse City, Mich., and Northeast Securities Corporation in Minneapolis.
The $194 million-asset TCSB had been under an order since December 2010 that required the company to serve as a source of strength for its Traverse City State Bank subsidiary and included a ban on paying dividends, incurring debt and buying back stock. The Fed also required TCSB to provide cash flow projections annually and to report on its compliance with the order in writing quarterly.
The $339 million-asset Northeast had been under an order since May 2010 that required the company to serve as a source of strength for its Northeast Bank subsidiary and included a ban on paying dividends; increasing compensation paid to officers, shareholders or their families; incurring debt and buying back stock. The Fed also required Northeast to report quarterly on its financial condition.
The Fed terminated the action against TCSB on Sept. 27 and the action against Northeast on Monday. The Fed released both decisions Thursday.
