Regulators placed Bank of Granite under a so-called “cease and desist” order, the bank announced this afternoon, according to our sister newspaper, The Charlotte Observer.
Observer staff writer Christina Rexrode reports that the Granite Falls-based bank has lost tens of millions of dollars, suspended its shareholder payout and scaled back on lending.
Despite the name, “cease and desist” orders do not require a bank to immediately shut down, but they do give orders on any number of topics. Among other things, regulators are requiring Bank of Granite to assess management and reduce assets. It cannot pay shareholder dividends without regulators' consent. The bank must report to the Federal Deposit Insurance Corp. and the N.C. Commissioner of Banks at least quarterly on its progress in implementing the orders.
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