On 25 June 2014, the Federal Reserve Board announced that Regions Bank, Birmingham, Alabama, will pay a $46 million penalty for misconduct related to the process followed by the bank in the first quarter of 2009 for identifying and reporting non-accrual loans. The Federal Reserve also issued a consent order requiring Regions Bank to continue to improve its relevant policies and procedures. The Federal Reserve’s consent order is being issued jointly with the Alabama Department of Banking, which is assessing Regions Bank a $5 million penalty, and in conjunction with actions by the Securities and Exchange Commission.
The Federal Reserve also announced enforcement actions against three former employees of Regions Bank who were responsible for the misconduct addressed in the action against the bank. Separately, the SEC is taking action against the three former employees of Regions Bank for their misconduct in connection with the first quarter 2009 reporting of non-accrual loans. The SEC also entered into a deferred prosecution agreement with Regions Financial Corp., Regions Bank’s parent holding company.
The full text of the SEC enforcement order is available at: http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542168845.
The full text of the Federal Reserve Board enforcement order is available at: http://www.federalreserve.gov/newsevents/press/enforcement/enf20140625a1.pdf.