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Financial Services Law Insights and Observations

FDIC releases May enforcement actions

Federal Issues FDIC Enforcement Civil Money Penalties

Federal Issues

On June 29, the FDIC announced a list of orders of administrative enforcement actions taken against banks and individuals in May 2018. The 14 orders include “five Section 19 orders; two civil money penalties; one removal and prohibition order; two terminations of consent orders; two terminations of insurance; one order for restitution; one modification of removal and prohibition order; and one modification of civil money penalty order.” The order for restitution is for violations of certain laws, regulations, and a 2016 consent order “relating to statutory lending limits and restrictions on loans to borrowers classified as ‘substandard.’” The civil money penalty orders relate to (i) unsafe or unsound practices and breaches of fiduciary duty, and (ii) a violation of Regulation O concerning the handing of certain loans from the bank to the respondent. The announcement also notes that there are no administrative hearings scheduled for July 2018.