Fed Takes Action Against Two Banks

Published July 12, 2011, 5:09 p.m. EDT

Updated July 12, 2011, 4:12 p.m. EDT

1 Min Read

The Federal Reserve on Tuesday announced written agreements with a pair of banking companies.

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First of Huron Corp. in Bad Axe, Mich., agreed to serve as a source of strength to its $246.2 million-asset Signature Bank, which has been operating under a consent order with the Federal Deposit Insurance Corp. and its state regulator since Jan. 27.

Greer Bancshares Inc., in Greer, S.C., also agreed to provide similar support its $443.4 million Greer State Bank, which has had a consent order with the FDIC since March 1.

In both agreements, the companies are barred from paying any dividends or paying interest and principal on subordinated debt and trust preferred securities without Fed approval. Both companies also agreed to provide regulators with cash flow projections for 2011, among other things.

Paul Davis

Founder, Bank Slate

Paul Davis is the founder of Bank Slate, a financial strategy and research firm. He previously led community bank coverage at American Banker.

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