Herring Bank Under Close Watch From Federal Reserve, Texas Department of Banking

The Federal Reserve and the Texas Department of Banking are keeping a close eye on the Herring Bank.

They’ve issued an order for the bank to tighten controls on their banking procedures.

On October 6, 2021, the FDIC issued an order to upgrade the bank’s board and management oversight, affiliate transactions, internal controls, information technology, and asset and liability management.

As of June 29, 2023, the Federal Reserve noticed flaws in the bank’s board and management oversight, liquidity and funds management practices, and affiliate transaction policies.

All three institutions have mutually agreed to a cease and desist order.

During this order, the directors of Herring Bank are to submit a strategic plan, accepted by the Federal Reserve, that displays direction, objectives and long-range goals.

Herring Bank is required to submit these plans in a timely manner from the date it was assigned, June 29.