FDIC Eases Requirements for Terminating Consent Orders

The FDIC recently updated the cease-and-desist actions section of its Formal and Informal Enforcement Actions Manual (Manual) to broaden the circumstances under which termination of these orders may be considered. 

Specifically, the Manual no longer requires full compliance with the order provisions and full correction of violations associated with the order before considering termination.  For consideration, the institution need only achieve substantial compliance, which may be deemed met when the institution has satisfied the essential requirements of the order’s purpose or objective, even if minor, isolated requirements have not been fully satisfied.  The Manual now also allows for termination of these orders in rare situations when even substantial compliance, or one of the other conditions for consideration, is not met.

The FDIC notes that these changes allow more discretion in the decision to terminate these orders.