On November 17, the OCC released a list of recent enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with such entities. Included is a cease and desist order against a New York-based bank for allegedly engaging in unsafe or unsound banking practices related to its board and management oversight and funds management practices, and for violating the bank’s October 2018 Formal Agreement with the OCC. According to the OCC, the bank’s board and management failed to address certain regulatory concerns outlined in the 2018 Formal Agreement. Among other things, the OCC asserted that the bank engaged “in unsafe or unsound practices, including those related to strategic planning and implementation, management and board oversight, audit, risk management, and mortgage banking activities.” The order requires the bank to, among other things, establish a compliance committee, develop a written strategic plan, and establish capital in accordance with 12 C.F.R. Part 3: (a) a total capital ratio at least equal to thirteen percent; and (b) a leverage ratio greater than nine percent.
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