FDIC publishes recent enforcement actions

The FDIC has released a list of 32 orders of administrative enforcement actions taken against banks and individuals in February. Included were two consent orders, 13 removal and prohibition orders, five Section 19 orders, four civil money penalties (CMPs), and eight terminations of earlier actions.

Of the CMPs, one was issued to a Cuba City, Wisconsin bank for engaging in a pattern or practice of committing violations of the Flood Disaster Protection Act and/or the notice requirements under section 1364 of the National Flood Insurance Act of 1968, and/or Part 339 of the FDIC's Rules and Regulations, by, on multiple occasions, making, increasing, extending or renewing loans secured by a building or mobile home located or to be located in a special flood hazard area without requiring that the collateral be covered by sufficient flood insurance.

The other three CMPs, each for $15,000, were imposed on individuals who are or were institution-affiliated parties of a bank in Palos Hills, Illinois, for allegations of recklessly engaging in unsafe or unsound practices or breaches of fiduciary duty by knowingly causing the bank to file a call report not in accordance with instructions.