Nanobank enforcement action ends after about 5 years... Fed announces

The Federal Reserve Board has terminated its 2021 written agreement enforcement actions against Allegiant United Holdings, LLC, Nano Financial Holdings, Inc., and Nano Banc, effective October 21, 2026. The agreement, signed February 24, 2021 with the Federal Reserve Bank of San Francisco, had classified the two holding companies as registered bank holding companies and Nano Banc as a state-licensed Fed member bank owned and controlled by them, with a shared goal of maintaining financial soundness. The termination ends roughly five years of heightened regulatory oversight tied to the lenders' financial and managerial strength. It matters as a signal that the Fed considers the institutions' condition and holding-company support satisfactory. What to watch next is whether the parent companies resume normal capital and governance flexibility without supervisory restrictions.