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| Regulatory actions against U.S. financial institutions increased during the latest quarter. Many of the banks that faced actions also face possible failure.During the first quarter, 180 regulatory actions taken against financial institutions and mortgage lenders were tracked by MortgageDaily.com. The number of actions was up from a revised 164 during the fourth-quarter 2008.
Regulatory Actions by Quarter
First-quarter cease-and-desist orders numbered 65, up from the prior period’s 58. Institutions that are seized by bank regulators often face cease-and-desist orders prior to their closing. Formal agreements were reached with 46 institutions, climbing from the fourth quarter’s 34, while 33 civil money penalties were issued in the first quarter, falling from 38. Regulators issued 19 removal-and-prohibition orders, lower than 25 in the second quarter.
Institutions that faced first-quarter regulatory actions and subsequently failed include Alliance Bank, America West Bank, Cape Fear Bank, Corn Belt Bank and Trust Co., First Bank of Beverly Hills, Firstcity Bancorp Inc., New Frontier Bank, Security Savings Bank, Sherman County Bank and Silverton Bank, N.A. The majority of reported actions, 102, were taken by the Federal Deposit Insurance Corporation. Activity rose from 101 action in the prior period. First-quarter regulatory actions taken by the Office of the Comptroller of the Currency edged up to 38 up from the fourth-quarter’s 36. Over at the Federal Reserve, 32 orders were reported, climbing from 23.
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