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Bank Orders Increase


Bank Orders Increase

DALLAS — (June 28, 2010) /PRNewswire/ Regulatory actions against U.S. financial institutions continued higher during the first quarter, albeit at a slower pace, based on a quarterly analysis by — a leading source of online news and data for the mortgage industry.

Federal regulators took 437 actions against banks and credit unions during the first quarter, a 6% increase from the previous quarter. Activity was up 88% from a year earlier.

Regulatory actions have increased each of the last eight quarters.

The analysis reflects actions reported by the FDIC, the Federal Reserve, the National Credit Union Administration, the OCC and the OTS.

Actions by Quarter

Q1 2010 Q4 2009 Q1 2009
437 412 233

Cease-and-desist orders, which often precede bank failures, came in at 137 — dropping 15% from the fourth quarter and suggesting bank failures might be near a peak.

Also lower were formal agreements, which often require institutions to shore up capital, improve operations or change management.

But the number of civil money penalties jumped 40%.

Type of Order Q1 2010
Cease-and-Desist 137
Agreement (written and formal) 79
Civil Money Penalty # 73
Removal-Prohibition 57
Other 56
Prompt Corrective Action 26

The biggest jump in activity was at the FDIC, where the number of actions rose 21% from the fourth quarter. The FDIC issued more than twice as many orders as it did a year earlier.

Orders also increased at the OCC.

But actions were down nearly a third at the OTS, while Fed actions were off 5%.

Regulator Q1 2010
FDIC 235
Federal Reserve 55
OCC 77
OTS 54

“While we did see an increase in overall actions, the rate of increase slowed by more than half compared to the fourth quarter,” Founder and Publisher Sam Garcia said. “Based on the pace of orders and the number of first-half 2010 failures — and given no extraordinary market events — we project between 175 and 200 banks failures during all of this year.”

Last year, 140 federally insured banks failed.

The full regulatory actions report is available at:

Complete regulatory news is available at:

Founded in 1998, provides online mortgage news and analysis for the mortgage industry. Around 1 million news pages are viewed monthly at and its affiliate publications.

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