Overview Under the Equal Access to Justice Act, 5 USC 504 , attorneys fees are available to the prevailing party (if it is not the government) in a contested administrative enforcement action Statute also allows miscellaneous payments of witness fees and the like Attorneys Fees and Other Expenses Treasury - 31 [more...]
Summary A Cease and Desist order C&D is an injunctive type of action which proscribes certain unsafe or unsound practices and/or violations of law and may require an insured depository institution to take affirmative action Authorized by Section 8(b) of the FDIA for Banks and Thrifts Section 206(e) of the FCA for Credit Unions Several Federal [more...]
Overview Civil money penalties are an enforcement tool whereby the financial regulatory agencies can assess substantial monetary penalties against the institutions they regulate and those institutions' IAPs CMPs are not restitution [more...]
Overview of the Enforcement Process Formal enforcement actions may be initiated by Federal regulatory agencies To change the status of a federally insured depository institution or credit union ("insured institution") or because of its condition As a result of acts or practices by the insured institution and/or its [more...]
Summary In addition to enforcement actions against banks and IAPs, the banking agencies may pursue enforcement actions against municipal securities dealers, clearing agencies, transfer agents and accountants Miscellaneous Enforcement Actions and [more...]
Types of Actions Removal and Prohibition Informal Actions Written Agreements Prompt corrective Action Cease and Desist Orders Civil Money Penalties Termination of Insurance Actions Against Accountants and Other [more...]
In General Typically used if the regulators feel that the problem(s) are not too severe and may be resolved quickly through informal action There are a variety of informal enforcement actions used by some or all of the agencies Some reflect negotiations between the regulators and the banks Others are issued unilaterally Actions mentioned in the [more...]
Overview Written directive that may be issued with or without notice requiring a depository institution to take certain actions or adhere to certain proscriptions which become more severe as the institution's capital situation worsens In general, the early intervention by the regulators requires the banks in question to [more...]
Overview - Civil Violations Any officer, director or other IAP of an insured depository institution may be suspended, removed from office and/or barred from participating in the affairs of any insured institution by the primary federal regulator of the institution Authorized by Section 8(e) of the FDIA 12 USC 1818(e) In general, a [more...]
FDIC Deposit Insurance Voluntary Termination A voluntary termination of deposit insurance is not an Enforcement Action per se , since it requires a completely voluntary action on the institution's part Any insured depository institution which is not A national member bank; A State member bank; A Federal branch; A Federal [more...]
Summary Unsafe and unsound banking practice Any action, or lack of action, which is contrary to generally accepted standards of prudent operation, the possible consequences of which, if continued, would be abnormal risk or loss or damage to an institution, its shareholders, or the agencies administering the insurance funds This definition, [more...]
Written Agreements Written Agreements are formal written documents, executed by the institution(s) and/or IAPs and the appropriate agency or agencies State agencies may also be party to these agreements. They set forth corrective actions to be taken Violation of written agreements can lead to more serious enforcement actions such as Termination [more...]