Among several recently issued regulatory orders were two cease-and-desist orders and one prompt corrective action. The regulator of the country’s credit unions, meanwhile, wants a say in the supervision of huge financial institutions.
National Credit Union Administration Chairman Michael E. Fryzel issued a statement this month indicating the group supports the creation of a systemic risk council such as that outlined in recent senate testimony by Federal Deposit Insurance Corporation Chairman Sheila Bair. But he wants the credit union regulator to be included in the process.
“While I continue to recommend the preservation of the current regulatory structure, where NCUA and other entities retain their supervisory and insurance functions, I also see significant policy benefit to a council responsible for broad standard setting as well as monitoring of implementation of prudential guidelines,” Fryzel stated. “I encourage Congress to make certain that NCUA is included as a council member in any legislation that would create such a systemic risk council.”
In its regulatory agenda filed in the Federal Register this month, the U.S. Department of Housing and Urban Development said the final rule for the Real Estate Settlement Procedures Act was the only pending item on its upcoming agenda.
The Federal Reserve Board of Governors reported the following written agreements, which generally require banks to conserve capital, improve lending practices and report back on their progress.
| Company | Location | Regulator | Date | Docket No. |
| First Mutual Bancorp of Illinois, Inc. | Harvey, Ill. | Federal Reserve Bank of Chicago | May 8 | 09-057-WA/RB-HC |
| Philippine National Bank | branch in New York | Federal Reserve Bank of San Francisco, Federal Reserve Bank of New York, New York State Banking Department | May 8 | 09-051-WA/RB-FB 09-051-WA/RB-FBR |
| Security Bank Corp., Security Interim Holding Corp. | Macon, Ga. | Federal Reserve Bank of Atlanta, Banking Commissioner of the State of Georgia | May 6 | 09-059-WA/RB-HC |
The fed issued a prompt corrective action directive against Community Bank of West Georgia, Villa Rica, Ga., on May 19. The docket No. is 09-056-PCA-SM.
“The board of governors of the Federal Reserve System has determined that as of March 2, 2009, Community Bank … is undercapitalized,” the order stated. “The bank has failed to submit to the board of governors an acceptable capital restoration plan.”
A Nov. 7, 2008, cease-and-desist order against Dresdner Bank AG in Frankfurt, Germany, and Dresdner Bank AG’s New York Branch was terminated on May 11 by the fed.
The following orders were issued by the Office of the Comptroller of the Currency.
| Bank | Location | Order Type | Date | Order No. |
| Citizens National Bank of Springfield | Springfield, Mo. | cease-and-desist | April 7 | 2009-045 |
| Doha Bank | New York | civil money penalty | April 20 | 2009-056 |
| First Tennessee Bank N.A. | Memphis, Tenn. | civil money penalty | March 25 | 2009-046 |
| Red Mountain Bank, N.A. | Birmingham, Ala. | formal agreement | March 27 | 2009-047 |
| National Bank of Arkansas in North Little Rock | North Little Rock, Ark. | formal agreement | March 30 | 2009-048 |
| Merchants Bank of California, N.A. | Carson, Calif. | formal agreement | March 31 | 2009-049 |
| Texana Bank, N.A. | Linden, Texas | formal agreement | April 29 | 2009-050 |
| Franklin Community Bank, N.A. | Rocky Mount, Va. | formal agreement | April 16 | 2009-051 |
| William W. Anderson, Jr., The First National Bank of Pontotoc | Pontotoc, Miss. | removal/prohibition | April 22 | 2009-052 |
| John S. Cho, JPMorgan Chase Bank, N.A. | Columbus, Ohio | removal/prohibition | April 23 | 2009-053 |
| Clifford ‘Hugh’ Bowden, Jr., City National Bank | Kilgore, Texas | removal/prohibition | April 23 | 2009-054 |
The OCC terminated enforcement action No. 2008-048 against The Morris County National Bank of Naples in Naples, Texas, on March 25.
New South Federal Savings Bank in Irondale, Ala., faced cease-and-desist order No. SE-09-026 from the Office of Thrift Supervision on May 15.
Hampton Roads Bankshares Inc. disclosed on May 13 that it had determined a member of its nominating and compensation committees had ceased to be an independent director, in violation of Nasdaq Marketplace Rules. The director was “promptly” removed from his position on both committees. An upcoming Nasdaq staff letter is expected to indicate that the institution is now in full compliance.
BankUnited Financial Corp. issued a news release on the day of its collapse indicating that the Nasdaq Stock Market had notified it that it was out of compliance with rules for continued listing because it had not filed its Form 10-Q with the Securities and Exchange Commission on time.
