On September 28, the FDIC announced a list of administrative enforcement actions taken against banks and individuals in August. Included among the actions is a removal and prohibition and civil money penalty assessment issued against an individual acting as an institution-affiliated party of a New Jersey-based bank for allegedly engaging in unsafe or unsound practices and breaches of fiduciary duty while employed as the bank’s chief lending officer. Among other claims, the respondent allegedly “originated loans and extended the maturity dates on existing loans to borrowers despite their inability to repay the loans, and caused inaccurate past-due reports on the loans to be provided to the Board of Directors of the Bank (Board), thereby preventing the Board from discovering that the borrowers were not making their payments to the Bank on a timely basis.”
Also on the FDIC’s list of August orders are five Section 19 orders, which allow applicants to participate in the affairs of an insured depository institution after having demonstrated “satisfactory evidence of rehabilitation,” six terminations of consent orders, and three terminations of orders for restitution. The FDIC database containing all August enforcement decisions and orders may be accessed here.
There are no administrative hearings scheduled for October 2018.