The September enforcement actions included the following:
- 8 consent orders
- 13 civil money penalties
- 20 section 19 orders
- 19 removal and prohibition orders
- 8 orders terminating consent orders and cease and desist orders
Consent orders are issued to banks that are considered to be operating in an unsafe and unsound manner and is one of the most serious actions that regulators can take against a bank.
Civil money penalties are assessed by regulators when banks are found to be in violation of various rules and regulations.
Section 19 orders, issued under the provisions of Section 19 of the Federal Deposit Insurance Act, are issued by the FDIC to prohibit any person convicted of “any criminal offense involving dishonesty or breach of trust” from participating in the management or control of an FDIC insured institution.
Removal and prohibition orders are usually taken by regulators against individuals who have committed “violations of law or regulations, unsafe or unsound banking practices, and/or breach of fiduciary duty.” An individual issued a removal and prohibition order is banned from any further participation in the affairs of any financial institution insured by the FDIC.
Despite the stabilization of the banking industry, one out of every ten FDIC insured institutions is still classified as a Problem Bank by the FDIC. Virtually all of the problem banks have outstanding enforcement actions issued against them. At June 30, 2012, there were 732 banks on the FDIC Problem Bank List out of a total of 7,246 FDIC insured banks and savings institutions.
The 8 banks issued consent orders are listed below (please click on listing for larger image).
The full listing of September enforcement actions can be viewed at FDIC Enforcement Decisions and Orders.