Miami-based Espirito Santo Bank agreed to a consent order with federal and state regulators in August, regulatory documents released Friday show.
The order prohibits the bank from entering into any extention of credit to Banco Espirito Santo of Lisbon or to any other affiliate, pay dividends or pay any deposit or other debt held at the bank in excess of $500,000, without seeking regulators’ written consent.
The enforcement action also requires the bank to adopt a plan to sell or merge itself or transfer its assets and liabilities into a bank that is not controlled by Espirito Santo Control S.A.
Portuguese regulators bailed out Lisbon-based Banco Espirito Santo in August, dividing the group into two banks, one of which is to be sold. Among the entities to be sold is the Miami-based bank.