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Bankers have almost become used to the intense growth of new rules in the five years since the financial crisis, but some see a light at the end of the tunnel as the agencies inch toward the end of Dodd-Frank rulemakings and the economy improves.
December 26 -
The Federal Deposit Insurance Corp. took action against six banks and freed a dozen from orders in October.
December 2 -
The Office of the Comptroller of the Currency has taken disciplinary action against the banking software provider Jack Henry & Associates for failing to get a processing center damaged by Hurricane Sandy up and running in a timely manner.
December 20
The Federal Deposit Insurance Corp. issued a prompt corrective action against AztecAmerica Bank in Berwyn, Ill., in November and hit two other banks with consent orders.
The $79 million-asset AztecAmerica is undercapitalized and the FDIC has ordered it to either raise funds or sell itself to another company. Regulators notified the $79 million-asset bank of its undercapitalized status in September. The bank then submitted a plan to increase capital that regulators found unacceptable.
The action says that the AztecAmerica's condition has deteriorated since its May risk management examination and that "management has not demonstrated the ability to return the bank to a safe and sound condition."
The 8-year-old bank had a 2% Tier 1 leverage ratio and a 4.1% total risk-based capital ratio as of Sept. 30, according to the FDIC. It lost more than $2 million in the first nine months of this year and roughly 20% of its loans are at least 90 days past due, according to FDIC data.
AztecAmerica is operating under a November consent order that requires it to address problems with asset quality, management and earnings and maintain a minimum 8% Tier 1 leverage ratio and a minimum 12% total risk-based capital ratio.
The FDIC also issued consent orders against Bank of Mingo in Williamson, W.Va., and Liberty Bell Bank in Marlton, N.J.
The $107 million-asset Bank of Mingo was ordered to increase compliance with the Bank Secrecy Act and review management. The bank must strengthen policies and procedures for high-risk accounts and customers and identifying, evaluating and reporting suspicious activity, according to the order. Bank of Mingo was also ordered to implement a Customer Identification Program.
The FDIC ordered Liberty Bell Bank in Marlton, N.J., to address weaknesses in asset quality, capital, earnings and liquidity. The $170 million-asset bank must also review management and boost its Tier 1 leverage ratio to a minimum of 6% and its total risk-based capital ratio to a minimum of 10%.
Twelve banks