WBK Industry News - Federal Regulatory Developments

FDIC Announces March Enforcement Actions

The FDIC recently announced a list of thirteen administrative enforcement decisions and orders taken against banks and individuals in March 2019, including “three consent orders; two orders terminating consent orders; four Section 19 orders; one removal and prohibition order; two voluntary terminations of insurance orders; and two orders to pay civil money penalty.”

In one case assessing a civil money penalty, the FDIC imposed, among other things, a $200,000 civil money penalty against an Oklahoma-based bank for allegedly violating the FTC Act and the TCPA by (i) using telemarketers who misrepresented themselves as employees or affiliates of the federal government; and (ii) placing calls to consumers who appeared on the National Do Not Call Registry or who requested to be added to the bank’s internal Do Not Call List.

The second consent order assessed a civil money penalty of $10,000 against an individual, who is a former institution-affiliated party of a California-based bank, which was in receivership.  According to the consent order, the individual (i) “engaged or participated in violations, reckless unsafe or unsound banking practices, and breaches of fiduciary duty as an institution-affiliated party;” (ii) that these activities were part of a pattern of misconduct and resulted in financial loss or other damage to the bank and prejudiced the interests of depositors; and (iii) that the actions demonstrated “willful and/or continuing disregard for the safety and soundness of the bank.”  The consent order also prohibited the individual’s participation in the affairs of any insured financial institution.

The thirteen administrative enforcement decisions and orders can be found here.