FDIC Unleashes March Enforcement Actions: Prohibitions, Penalties and Terminations Unveiled

The Federal Deposit Insurance Corporation (FDIC) has released a chilling list of administrative enforcement actions taken against banks and individuals in March 2023. This latest round of crackdowns includes four prohibition orders, three orders terminating deposit insurance, two consent orders, one order to pay a civil money penalty (CMP), and an order terminating a previous consent order.

Among the targeted entities are financial institutions and executives accused of serious lapses in compliance and governance. The FDIC’s actions underscore its commitment to upholding the integrity of the banking sector and protecting consumers.

The prohibition orders issued by the FDIC prevent individuals from engaging in certain activities, such as serving as an officer or director of a bank without prior approval. These measures are designed to ensure that only qualified individuals can lead financial institutions.

Three banks faced the termination of their deposit insurance, a severe penalty that could potentially leave customers’ deposits at risk. This action is taken when the FDIC determines that a bank poses an unacceptable risk to its depositors.

Two consent orders were entered into, indicating that the parties involved agreed to the terms without contesting them. These orders typically address ongoing compliance issues and require banks or individuals to take specific actions to rectify problems.

The FDIC also imposed a civil money penalty on one bank for violations of banking regulations. This monetary fine is intended to punish illegal activity and deter future misconduct.

For those interested in seeing the full list of orders, adjudicated decisions, and notices, including details of administrative hearings, the FDIC’s Web page provides comprehensive information. The deadline for the next round of enforcement actions is quickly approaching, with no hearings scheduled for May 2023.