South Financial Group Inc. (TSFG)

[ftb]

US Fed Issues Enforcement Action Against South Carolina Bank
Last update: 5/7/2010 9:00:00 AM

By Darrell A. Hughes
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The U.S. Federal Reserve announced enforcement actions Friday against the South Financial Group Inc. (TSFG), moves to help maintain financial soundness at the company, according to the Fed order.

Under a written agreement, the Greenville, S.C.-based bank holding company cannot declare or pay any dividends without prior approval from the Fed.

South Financial owns and controls Carolina First Bank and other non-bank subsidiaries. The firm, among other enforcements, also can't directly or indirectly take dividends or any other form of payment that would represent a reduction in capital from its bank subsidiary, Carolina First. South Financial must submit to Fed officials a written plan to maintain sufficient capital.

-By Darrell A. Hughes,
Dow Jones Newswires;
202-862-9255
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Dow Jones Newswires
May 07, 2010 09:00 ET (13:00 GMT)