The Federal Reserve announced enforcement actions Thursday against Capitol Bancorp Ltd. of Lansing, Mich., and First National Bancshares Inc. of Fredonia, Kan.
The Fed also ordered Compass Bank, a Birmingham, Ala., unit of BBVA SA, to pay a $70,625 civil penalty in connection with alleged violation of the National Flood Insurance Act.
Capitol and First National cannot declare or pay any dividends without prior approval from the Fed.
Capitol cannot directly or indirectly take dividends or any other form of payment representing a reduction in capital from any of its nine second-tier bank holding companies. First National is also restricted from directly or indirectly taking dividends or any other payment representing a reduction in capital from its subsidiaries.
Both Capitol and First National also cannot incur or increase or guarantee any debt without written approval from the Fed. Capitol must submit a written plan to maintain sufficient capital. First National must submit a written cash flow projection for 2010.
