Fed ends enforcement action against United Texas Bank

The Federal Reserve Board terminated a two-year-old enforcement action against United Texas Bank in Dallas.

The original cease-and-desist order, issued in September 2024, stemmed from a May 2023 exam that found “significant deficiencies” in the $1.1 billion-asset bank’s risk management tied to foreign correspondent banking and virtual currency customers. The C&D also cited concerns tied to anti-money-laundering controls.

The bank earlier this year switched to a national charter and oversight by the Office of the Comptroller of the Currency. That move drew a rebuke from Sen. Elizabeth Warren (D-Mass.)

“Granting United Texas Bank a national bank charter sets a dangerous precedent that gives other banks the green-light to convert their charters to the lowest common denominator regulator rather than fix the serious issues that may put the U.S. financial system at risk,” Warren said at the time.