OCC releases enforcement actions

Federal Issues Bank Regulatory OCC Enforcement Bank Compliance

On December 16, the OCC released a list of recent enforcement actions taken against national banks, federal savings associations, and individuals currently or formerly affiliated with such entities. Included in the release is a cease and desist order issued against an Oklahoma-based bank for alleged “unsafe or unsound practices” related “to management and board supervision, strategic and capital planning, risk ratings and loan review, credit administration, and the allowance for loan and lease losses.” Without admitting or denying the claims, the bank is required by the order to, among other things, maintain capital ratios, as defined in and as calculated in accordance with 12 C.F.R. Part 3: (i) “a total capital ratio at least equal to thirteen percent”; and (ii) “a leverage ratio at least equal to nine percent.” The order also provides that the bank must establish a Compliance Committee “to monitor and oversee the Bank’s compliance with the provisions of this [o]rder,” and “will meet at least monthly and maintain minutes of its meetings.”