FDIC Orders 10 Banks to Pay Up for Prohibited Practices

WASHINGTON — In a move aimed at maintaining the integrity of the US banking system, the Federal Deposit Insurance Corporation (FDIC) has made public the list of enforcement actions taken against banks and individuals in April 2023. The list reveals a total of 10 orders, including six orders of prohibition, two orders to pay civil money penalties, and two orders that combined an order of prohibition and order to pay civil money penalties.

The FDIC’s move is a clear indication of its commitment to holding banks accountable for any wrongdoing. The enforcement actions are a result of the FDIC’s ongoing efforts to ensure that banks operate in a fair and transparent manner. The agency’s actions are aimed at maintaining public confidence in the banking system and protecting consumers from fraudulent activities.

According to the FDIC, the administrative enforcement actions in the orders issued in April 2023 consisted of six orders of prohibition, which restrict individuals from participating in the banking industry due to their involvement in prohibited activities. Two orders to pay civil money penalties totaled $1.5 million. The remaining two orders combined an order of prohibition and order to pay civil money penalties, resulting in a total of $750,000 in fines.

The FDIC has made the enforcement actions publicly available on their website, allowing consumers to view the details of the orders, adjudicated decisions, and notices. The agency’s commitment to transparency is a welcome move, as it enables consumers to make informed decisions when dealing with banks.

LaJuan Williams-Young, an FDIC spokesperson, emphasized the importance of the agency’s efforts in maintaining public trust in the banking system. “The FDIC is dedicated to ensuring that banks operate in a fair and transparent manner,” she said. “Our enforcement actions are aimed at protecting consumers and maintaining public confidence in the banking system.”

In a related development, there are no administrative hearings scheduled for June 2023. The FDIC has made it clear that it will continue to take a tough stance on bank misconduct, and consumers can expect to see more enforcement actions in the coming months.

The FDIC’s enforcement actions are a testament to the agency’s commitment to protecting consumers and maintaining public trust in the banking system. As the agency continues to crack down on bank misconduct, consumers can rest assured that their interests are being protected.

Contact(s): FDIC: LaJuan Williams-Young, (703) 470-0201

Last Updated: May 26, 2023