The Federal Reserve issued enforcement actions Tuesday against the bank holding companies First Security Group Inc. and Butte State Co.
Under the agreement, the $1.3 billion-asset First Security, of Chattanooga, Tenn., cannot declare or pay any dividends without prior written approval from the Fed. The Fed said it took the actions to maintain financial soundness at the companies.
The company, which owns and controls FSGBank, must submit within 60 days a plan to maintain "sufficient capital" on a "consolidated basis," among other restrictions.
The $45 million-asset Butte State in Nebraska must adhere to similar guidelines. Butte State also must submit a plan to the central bank within 30 days of the agreement.
