Five banks entered into stipulated orders and written agreements with the Federal Deposit Insurance Corporation (FDIC) in November.
These cases were among 13 FDIC enforcement decisions and orders delivered in November and made public Friday (Dec. 27) by the FDIC, according to a Friday press release. Among them were 11 orders, one notice and one adjudicated decision and order involving banks and individuals.
In the five stipulated orders and written agreements involving banks, the FDIC determined, and the respondents neither admitted nor denied, that a bank failed to follow Home Mortgage Disclosure Act (HDMA) reporting requirements; that two banks violated the Flood Disaster Protection Act (FDPA) by offering designated loans secured by personal property not covered by flood insurance for the term of the loan; that a bank violated the Bank Secrecy Act (BSA) and its implementing regulations; and that a bank had unsafe or unsound banking practices.
In addition, a bank was given a notice of charges and hearing involving FDIC allegations of failure to maintain an adequate Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) compliance program.
Four of the administrative enforcement actions taken in November by the FDIC involved individuals.
In three of these cases, the FDIC determined, and the respondents neither admitted nor denied, that a bank vice president misappropriated funds to fund payments to false and fictitious loans; that a branch manager stole cash, embezzled funds and falsified bank documents; and that a senior vice president and chief auditor recorded confidential meetings with FDIC and state examiners without the knowledge of the bank or examiners and attempted to extort bank executives.
In a fourth case involving an individual, an adjudicated decision found that a loan officer misappropriated funds from customers while helping them through the loan approval process.
The FDIC also announced three orders terminating consent orders involving banks in November.
In an earlier, separate announcement, the FDIC said that its roster of “problem banks” had grown to a multiyear high, PYMNTS reported Dec. 16.
In its latest quarterly report, the FDIC said the number of such banks, which are “those institutions with financial, operational or management weaknesses that threaten their continued financial viability,” reached 68 in the third quarter.
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