| States are eager to regulate federally chartered financial institutions, according to a letter to U.S. lawmakers. Seven out of more than 20 regulatory orders were against six different institutions operating under the name “First National.”
Attorneys general from two dozen states including California, Illinois and Ohio issued a letter to members of Congress in strong support of the creation of a Consumer Financial Protection Agency. The borrower-focused approach will maximize government resources, eliminate regulatory gaps and improve accountability. In addition, it will promote innovation in approaching fraudulent practices. The the states’ chief law enforcement officers were most supportive of the proposed regulator because it would preserve the states’ own laws. They noted consumer protection laws should be equally applied to all banking and financial institutions operating within their states — regardless of state or federal charters. “Historically, states have been proven leaders in fighting unfair and deceptive practices,” the letter stated. “We believe an independent federal agency combined with joint enforcement by state officials is the best option for meaningful consumer protection in this area.”Collaboration between the National Credit Union Administration and state credit union supervisors is imperative during the current economic climate, an NCUA board member told a group attending an event hosted by the National Association of State Credit Union Supervisors. The agency, in collaboration with state supervisors, “has come along in refining its ideas on the qualities of supplemental capital that align with the credit union cooperative financial business model.” Vermont regulators largely prevented the calamity afflicting many U.S. housing markets by tightening their oversight in the 1990’s because of the bad acts of a few mortgage firms, the Wall Street Journal reported. The Federal Deposit Insurance Corporation issued an Order of Prohibition from Further Participation (FDIC-08-17e) on May 15 against Philip William Coon who was affiliated with Coast Bank of Florida. The following cease-and-orders were recently issued by the Office of the Comptroller of the Currency. Financial institution failures are often preceded by cease-and-desist orders. |
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Cease-and-Desist Orders
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| Formal agreements were reached with banks in the table below. Such agreements often require the preservation of capital, changes in lending practices and the appointment of new executives. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Formal Agreements
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| The OCC announced Friday that it terminated formal agreements with First National Bank in Goodland, Kan.; The First National Bank of St. Ignace in St. Ignace, Mich.; and First National Bank, Chisholm, Minn. |
