Fed Ends Enforcement Action Involving Allegiant, Nano Entities

The Federal Reserve Board announced that it has terminated an enforcement action involving Allegiant United Holdings, LLC, Nano Financial Holdings, Inc. and Nano Banc. The notice closes a supervisory matter that had applied to the two holding companies and the bank, lifting a formal constraint that had accompanied their operations.

Enforcement actions are among the tools the central bank uses when it concludes that a supervised institution or its owners have shortcomings in areas such as capital adequacy, liquidity, risk management or compliance with banking rules. Such orders generally set out required fixes and remain in force until regulators are satisfied that the problems have been addressed.

The Board's announcement did not describe the original terms of the action or the steps the companies took to resolve it. The Fed typically posts termination orders publicly once it determines that the conditions of an agreement have been met and that ordinary supervision can continue without the added requirements.

For the companies involved, the end of the action removes a layer of formal oversight along with the associated reporting and remediation obligations. The Fed retains its regular supervisory authority over the institutions and their parent companies.