The Federal Deposit Insurance Corp. on Sept. 25 released a list of orders of administrative enforcement actions taken against banks and individuals in August. There are no administrative hearings scheduled for October.
The following list excludes actions that do not meet criteria for S&P Global Market Intelligence's news coverage. Click here to view an Excel template showing our full database of enforcement actions against U.S. banks and thrifts.
Consent order
The FDIC issued a consent order to Weir, Kan.-based CBW Bank.
The bank consented to the issuance of the order without admitting or denying any violations of law or regulations.
Among other things, the bank is required to implement a revised Bank Secrecy Act compliance program and implement a revised customer due diligence program. The company is also required to cease all activity pertaining to foreign financial institution customers.
Order of prohibition
The FDIC issued an order of prohibition to former Greenbush, Minn.-based Border State Bank CEO Robert Hager, barring him from participating in the conduct of the affairs of any financial institution.
As CEO of the bank, now named Border Bank, Hager allegedly arranged for customers to obtain loans from the bank and then transferred the loan proceeds to himself. The order also states that he issued unauthorized letters of credit to secure loans used to further the purchase and delivery of a personal investment. Hager consented to the issuance of the order without admitting or denying the allegations.
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Former Tallassee, Ala.-based PrimeSouth Bank President Jimmy Monk entered into an order of prohibition with the regulator that bars him from participating in the conduct of the affairs of any financial institution.
As the bank's president, Monk obtained unauthorized advances from a loan issued to a customer and applied the proceeds to unrelated loan accounts of other individuals. Monk consented to the issuance of the order without admitting or denying the allegations. In July, he was sentenced to 12 months and one day in prison after pleading guilty to bank fraud.