A two-year-old enforcement action with a Chicago-based bank holding company and its subsidiary has been terminated, the Federal Reserve said Thursday.
The action against Chicago Shore Corporation (CSC), and Security Chicago Corporation (SCS, which in turn is owned by CSC) was related to a bank owned by SCS, Delaware Place Bank, also of Chicago, which signed a 2016 consent order with the Federal Deposit Insurance Corp. (FDIC) and the state regulator, the Illinois Department of Financial and Professional Regulation (IDFPR).
That order alleged “unsafe or unsound banking practices” at the bank, and called for review of management, board of directors’ participation, capital maintenance and more. That order was terminated in 2017, according to the FDIC and IDFPR.
The Fed and the two holding companies signed a written agreement in October 2016 pledging that the companies “serve as a source of strength to the Bank,” which included taking steps to ensure that the bank complied with its consent order.
The Fed’s announcement Thursday terminated the 2016 agreement with the holding companies.