FDIC Enforcement Action Summary, October 2008

The Federal Deposit Insurance Corporation (FDIC) releases the enforcement actions taken on insured banks on a monthly basis.  Today the FDIC released the list of orders of administrative enforcement actions taken against banks and individuals in October.  The FDIC processed a total of 37 orders in October.  These included fourteen cease and desist orders; five removal and prohibition orders; eleven civil money penalties; one Order Dismissing Certain Charges; five orders to terminate orders to cease-and-desist; and one order terminating temporary order to cease and desist.

Cease and desist orders often involve an order to desist activities or policies that the FDIC deems unsound.  The FDIC website defines the orders as, an injunctive-type order that may be issued when a banking organization or institution-affiliated party is engaging, has engaged or is about to engage in an unsafe or unsound banking practice, or a violation of law.  A banking organization or an institution-affiliated party subject to such an order is required to follow the proscriptions set out in the order and can be directed to take specified actions.

The banking organizations that had an enforcement notice that involved a Cease-and-Desist order or FINAL ORDERS ISSUED PURSUANT TO SECTION 8(b), 12 U.S.C. § 1818(b), include the following;

EvaBank, Eva, Alabama; FDIC-08-209b;
Issued 10/29/08

Alliance Bank, Culver City, California; FDIC-08-265b;
Issued 10/15/08

First Bank of Delaware, Wilmington, Delaware; FDIC-07-256b; FDIC-07-257k;
Issued 10/9/08  

FirstBank Financial Services, McDonough, Georgia; FDIC-08-165b;
Issued 10/23/08 

Heritage Community Bank, Glenwood, Illinois; FDIC-08-131b;
Issued 10/10/08 

Kenney Bank and Trust, Kenney, Illinois; FDIC-08-102b;
Issued 10/2/08 

Polk County Bank, Johnston, Iowa; FDIC-08-210b;
Issued 10/27/08 

The Bank of Harlan, Harlan, Kentucky, FDIC-08-164b;
Issued 10/2/08 

OneUnited Bank, Boston, Massachusetts; FDIC-08-294b;
Issued 10/27/08 

Sun Security Bank, Ellington, Missouri; FDIC-08-180b;
Issued 10/30/08 

Fort Davis State Bank, Fort Davis, Texas; FDIC-08-219b;
Issued 10/17/08 

Sanderson State Bank, Sanderson, Texas; FDIC-08-124b;
Issued 10/16/08 

MagnetBank, Salt Lake City, Utah; FDIC-08-176b;
Issued 10/1/08 

Bank of Wyoming, Thermopolis, Wyoming; FDIC-08-295b;
Issued 10/17/08 

Copies of the orders referred to above can be obtained from or inspected at the FDIC’s Public Information Center, 3501 Fairfax Drive, Room E-1002, Arlington, VA (telephone 703-562-2200 or 1-877-275-3342).  To view all orders online, visit the FDIC’s Web page at http://www.fdic.gov/bank/individual/enforcement/index.html.

This entry was posted on Friday, November 28th, 2008 at 9:28 pm and is filed under Money Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.