Federal Deposit Insurance Corporation (FDIC)
CRA evaluations released.
On October 2nd, the FDIC issued its list of state nonmember banks evaluated for compliance with the Community Reinvestment Act, as well as the ratings they received. More information on these can be found here.
Updates made to Money Smart Financial Education Program.
The FDIC announced two new resources tailored to meet the financial education needs of individuals with visual disabilities. The resources give consumers the opportunity to learn how to better manage their resources. For more information, visit the FDIC’s Money Smart page.
Final rule on swap margin requirements issued.
On October 22nd, the FDIC approved a final rule to established margin requirements for swap not cleared through a clearinghouse. The rule does not apply to swaps of financial institutions with $10 billion or less in total assets that enter into swaps for hedging purposes. More information on the rule can be found here.
Proposed rule issued to increase deposit insurance fund to statutorily required level.
The FDIC adopted a proposal to increase the Deposit Insurance Fund (DIF) to the statutorily required minimum level of 1.35 percent. The rule will impose on banks with at least $10 billion in assets a surcharge of 4.5 cents per $100 of their assessment base, after making certain adjustments. More information on the rule can be found here.
Office of the Comptroller of the Currency (OCC)
OCC releases CRA evaluations.
At the beginning of October, the OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became publish during the month of September. The list only contains national banks, federal savings associations, and insured federal branches. For more information, visit the OCC’s website.
Mortgage performance continues to improve.
According to the OCC’s second quarter data from eight national banks, first-lien mortgages continue to improve from a year ago. Reports showed that 93.8 percent of mortgages included in the report were current and performing at the end of the quarter, compared with 92.9 percent a year earlier. For more information on the report’s findings, see here.
Enforcement actions and terminations issued.
The OCC reported that all Cease and Desist Orders, Civil Money Penalty Orders, and Removal/Prohibition Orders were issued with the consent of the parties, unless otherwise indicated as a Decision and Order issued by the Comptroller of the Currency. For more information, see the OCC’s website here.
Securities and Exchange Commission (SEC)
Company to pay more than \$14 million in settlement.
On October 6th, the Securities and Exchange Administration announced that Bristol-Myers Squibb, a pharmaceutical company, agreed to settle charges that its joint venture in China made cash payments and provided other benefits to health care providers at state-owned and state-controlled hospitals in exchange for prescription sales. For more information on the case, please visit the SEC’s website.
Two executives charged for accounting failures.
The SEC announced charges against two former executives for accounting failures at a seller of computer memory storage and power supply devices. The complaint alleged that the executives tried to materially inflate revenues and gross margins. For more information on the case, please visit the SEC’s website.
Agency to pay $19.5 million to settle charges.
On October 13th, the SEC announced charges against one of the largest issuers of structured notes in the world for making false or misleading statements and omissions in offering materials provided to U.S. investors in structured notes linked to a proprietary foreign exchange trading strategy. For more information, visit the SEC’s website here.
Enforcement actions taken against six firms, including $2.5 million in monetary sanctions.
In mid-October, the SEC announced enforcement actions against six firms. These actions included more than $2.5 million in monetary sanctions and, in the case of one previously sanctioned firm, an order barring the firm from participating in stock offerings for a period of one year for violations of Regulation M. For more information on the transgression, visit the SEC’s website.
SEC enforcement results announced.
At the end of October, the SEC announced that in fiscal year 2015, it filed 807 enforcement actions covering a wide range of misconduct, and obtained orders totaling approximately $4.2 billion in disgorgement and penalties. The agency's cases during the year included the first action involving a Foreign Corrupt Practices Act (FCPA) action against a financial institution. For more information, visit the SEC’s website here.
Consumer Financial Protection Bureau (CFPB)
CFPB proposes to ban arbitration clauses.
On October 7th, the Consumer Financial Protection Bureau (CFPB) announced that it was considering proposing rules to ban consumer financial companies from using “free pass” arbitration clauses to block consumers from suing in groups to obtain relief. The proposal would allow consumers to pursue litigation in court and deter companies from wrongdoing. More information can be found here.
HMDA rule finalized.
On October 15th, the CFPB finalized a rule to improve information reported about the residential mortgage market. The rule would update the reporting requirements for the Home Mortgage Disclosure Act (HMDA) regulation. The rule will help to improve the quality and type of HMDA data. For more information, visit the CFPB’s website here.
Company ordered to pay $3.28 million.
On October 28th, the CFPB filed an administrative order against an automotive acceptance company specializing in loans to servicemembers. Allegedly the company engaged in illegal debt collection practices and was ordered to refund or credit about $2.28 million to servicemembers and other consumers, as well as pay a penalty of $1 million. For more information visit the CFPB’s website here.
National Credit Union Administration (NCUA)
Barclays Capital to pay \$325 million to resolve claims.
On October 19th, the National Credit Union Administration (NCUA) announced that Barclays Capital agreed to pay $325 million to resolve claims arising from losses related to purchases of faulty residential mortgage-backed securities by corporate credit unions. For more information, visit the NCUA’s website here.
NCUA recovers $2.2 billion from litigation against institutions.
The NCUA announced that total recoveries from litigation against banks that sold faulty residential mortgage-backed securities to corporate credit unions will reach $2.2 billion with the completion of an agreement with Wachovia. The final institution, Wachovia, agreed to pay $53 million to resolve claims concerning losses. More information can be found here.
NCUA prohibition orders issued.
The NCUA issued three more orders in October prohibiting several individuals from participating in the affairs of any federally-insured financial institution. These are available online, along with other recent actions, on the NCUA’s website.
Federal Reserve Bank
Interagency exam procedures for Regulation P revised.
On October 5th, the Federal Reserve Board revised examination procedures for Regulation P “Privacy of Consumer Financial Information.” The revisions reflect rulemaking issued by the CFPB in October 2014 amending requirements regarding provisions of annual disclosure of privacy practices. For more information, visit the FRB’s website here.
Emergency Communications System expanded.
The Federal Reserve issued a letter announcing the expansion of its Emergency Communications System (ECS). The expansion includes the addition of contact information of employees at Federal Reserve-supervised financial institutions who are capable of receiving and acting upon cyber emergencies. For more information on this expansion, visit the Federal Reserve’s website here.
Former executive to pay $100,000 to settle administrative charges.
On October 19th, the Federal Reserve Board announced that a former executive vice president was barred from participating in the affairs of any insured depository institution. He was also ordered to pay a civil penalty of $100,000 to settle administrative charges. For more information on the case, visit the Federal Reserve’s website.
French institution to pay $90.3 million penalty.
On October 20th, the Federal Reserve Board announced a $90.3 million penalty and consent cease and desist order against Crédit Agricole related to violations of U.S. sanctions. The institution was also prohibited from re-employing the individuals involved in the past actions or retaining them as consultants or contractors. Find more information here.
Department of Justice
Pharmacy to pay $9.25 million to settle allegations.
On October 7th, the Department of Justice (DOJ) announced that PharMerica Corp. agreed to pay $9.25 million to resolve kickback allegations. The company was charged with soliciting and receiving kickbacks from manufacturers in exchange for promoting a prescription drug for nursing home patients. $2.5 million will be allocated to cover Medicaid program claims by states electing to participate in the settlement. Find more information on the case here.
Hospital to pay $4.1 million to resolve False Claims Act allegations.
A Cincinnati-based hospital has agreed to pay penalties to settle allegations that it violated the False Claims Act by billing federal health care programs for costs associated with medically unnecessary spine surgeries.
Woman sentenced for $2.5 million stolen identity refund fraud ring.
A woman was sentenced to five years in prison and ordered to pay over $725,000 in restitution to the Internal Revenue Service (IRS) for conspiracy to defraud the United States with respect to claims as well as for aggravated identity theft. For more information on the case, visit the DOJ’s website here.
$237 million judgment resolved.
On October 16th, the DOJ announced that it resolved a $237 million judgment against a company for illegally billing the Medicare program for services referred by physicians with whom the hospital had improper financial relationships.
Other Regulatory Bodies
Scammers pay $7.9 million judgment.
Debt relief scammers agreed to pay a judgment of more than $7.9 million to settle Federal Trade Commission charges. Allegedly the scammers deceived consumers and charged them thousands of dollars while providing nothing in return. For more information about the complaint and charges, see the FTC’s website here.
OFAC issues most recent actions.
The Office of Foreign Assets Control (OFAC) consistently updates its list of recent actions. In October, several Counter Terrorism Designations (CTDs) were issued in addition to Kingpin Act Designations, liquidations, and counterterrorism designations. See the full list of actions here.
Sprint to pay $9.25 million penalty for FCRA violations.
On October 21st, the Federal Trade Commission (FTC) announced charges against the mobile service provider, Sprint, for failure to give proper notice to consumers who were placed in a program for customers with lower credit scores. For more information, please visit the FTC’s website here.