Federal Reserve Ends Supervisory Actions Against United Texas Bank

The Federal Reserve has terminated enforcement actions against United Texas Bank, Quontic Bank Acquisition Corp., and Quontic Bank Holdings Corp. as of September 2. In a press release published on the 5th, the Fed announced the termination of the cease-and-desist order against United Texas Bank dated August 29, 2024, and the written agreement with Quontic Bank Acquisition and Quontic Bank Holdings dated July 5, 2023. During an examination on May 22, 2023, deficiencies in governance and supervision were identified at United Texas Bank, along with significant flaws in risk management related to foreign exchange banking operations and cryptocurrency customers. The bank is required to submit a plan to strengthen board oversight within 90 days, as well as governance plans and BSA/AML compliance programs within 60 days each. However, this termination cannot be viewed as the end of all regulatory risks. United Texas Bank received a non-objection decision from the Fed regarding its transition to a national bank under the Office of the Comptroller of the Currency (OCC) on May 15. Quontic Bank announced that the OCC has terminated the consent order dated October 5, 2022, as of June 30.

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