A lot has been made of the most recent FDIC quarterly report, especially the large increase in problem banks to 550 – at least in the blogospehere; some media outlets seem to be burying this news. Underneath this news are the specific stories about troubled institutions, some of which the FDIC chronicles in its monthly list of orders of administrative enforcement actions.
Below is a partial list of October FDIC enforcement decisions and orders. I have only included cease-and-desist orders, prompt corrective action notices and termination of insurance orders as these are the areas where I am most interested as signs of banking system distress.
The legal language surrounding a termination of an insured depositary institution’s status is linked at the bottom. Also, have a look through the entire list of FDIC actions linked below. It may be helpful in getting a general sense of how regulation in the U.S. banking system functions and what types of administrative actions often precede seizure.
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(b), 12 U.S.C. § 1818(b)
Benchmark Bank, Aurora, IL; FDIC-09-404b; Issued 10/15/09 – PDF
FINAL ORDERS ISSUED PURSUANT TO SECTION 38, 12 U.S.C. § 1831o
Prompt Corrective Actions
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(q), 12 U.S.C. § 1818(q)
Voluntary Termination of Insurance
FINAL ORDERS ISSUED PURSUANT TO SECTION 19, 12 U.S.C.§1829
Section Termination 19
Steve M. Leonard; FDIC-09-383L; Order Granting Permission to File Application and Approving Application for Consent to Participate in the Affairs of any Insured Depository Institution; Issued 10/5/09 – PDF (PDF Help)
John P. Murphy, FDIC-09-450L; Order Granting Permission to File Application and Approving Application for Consent to Participate in the Affairs of any Insured Depository Institution; Issued 10/5/09 – PDF (PDF Help)
ORDER TERMINATING TEMPORARY ORDER TO CEASE AND DESIST
Order Terminating an Order to Cease and Desist
U.S. Code collection § 1818. Termination of status as insured depository institution – Cornell Law School Website
FDIC Enforcement Decisions and Orders – FDIC website