Waiting to get bitten:
The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of administrative enforcement actions taken against banks and individuals in February. No administrative hearings are scheduled.
The FDIC processed a total of 45 orders in February. These included twenty-one cease and desist orders; seven removal and prohibitions; one order modifying section 8(E) order of prohibition; ten civil money penalties; one prompt corrective action; one termination of insurance; one Order Granting Permission to File Application and Approving Application for Consent to Participate in the Affairs of any Insured Depository Institution (Section 19); and three orders terminating orders to cease and desist.
The Los Angeles Times explains as regards the Cali banks listed in the FDIC press release:
The banks — two in Los Angeles County, two in Riverside County, and one each in Stockton and La Jolla — received “cease and desist” orders that spell out publicly what the banks must do, such as boost capital levels, beef up management and rein in risky loans.
Bottom line: It’s not over yet.