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FDIC Enforcement Decisions and Orders

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Types of Action

Code Type of Action
a Termination of Deposit Insurance: A banking organization's insurance may be terminated if the institution is in an unsafe or unsound condition, or has engaged in unsafe or unsound banking practices or violations of law. Notice must be given to all depositors before the deposit insurance is terminated. 12 U.S.C. 1818(a).
a&t Temporary Suspension of Deposit Insurance: When a banking organization has no tangible capital, the insured status of the banking organization may be suspended pending completion of a formal deposit termination proceeding. 12 U.S.C. 1818(a)(8).
aa Section 8(a) Written Agreement under Part 325: Formal written agreement entered between a banking organization and the FDIC. The written agreement requires that specific actions be taken or the institution will have its deposit insurance terminated. 12 U.S.C. 1818(a); 12 C.F.R. 325.2(x).
b Order to Cease and Desist: An injunctive-type order that may be issued when a banking organization or institution-affiliated party is engaging, has engaged or is about to engage in an unsafe or unsound banking practice, or a violation of law. A banking organization or an institution-affiliated party subject to such an order is required to follow the proscriptions set out in the order and can be directed to take specified actions. 12 U.S.C. 1818(b).
bb Section 8(b)Written Agreement under Part 325: Formal written agreements entered between a banking organization and the FDIC. The written agreement requires that specific actions be taken and/or specific activities be prohibited, or the institution will have an order to cease and desist imposed upon it pursuant to the agreement. 12 U.S.C. 1818(b); 12 C.F.R. 325.2(x).
c&b Temporary Order to Cease and Desist: A temporary injunction that may be issued either concurrently with or immediately after initiation of a cease and desist action. The order is issued when there is suspected activity that is believed to have a possible significant adverse impact on a banking organization. Institution-affiliated parties subject to a temporary cease and desist order are prohibited from taking or continuing that particular action(s) that may have an adverse effect on the institution. 12 U.S.C. 1818(c).
CR Call Report Penalties: Penalties assessed against a banking organization for the late filing of call reports. 12 U.S.C. 1817 (a)
d Capital Directive: An order requiring a banking organization to inject additional capital to raise its capital to an acceptable level. 12 U.S.C. 3907.
e Removal and/or Prohibition Order: Any institution-affiliated party who has violated any law, any order to cease and desist, any condition imposed in writing, or engaged or participated in any unsafe or unsound banking practice may be removed from his/her employment at a banking organization and prohibited from being involved in the affairs of any insured banking organization without prior regulatory approval. 12 U.S.C. 1818(e).
ej Modifications/Terminations of Prohibition Order: A request by an institution-affiliated party who is subject to a prohibition order to return to banking or to engage in a specified activity. 12 U.S.C. 1818(e)(7)(b).
g Temporary Suspension/Prohibition Order for Indictment: An individual indicted for crimes involving dishonesty or breach of trust may be suspended from his/her employment at a banking organization pending the outcome of the indictment and may be prohibited from participating in any banking organization. If an individual is convicted, an order of suspension can be converted into a permanent prohibition order. 12 U.S.C. 1818(g).
HMD HMDA Penalties: Penalties assessed against a banking organization for violations of the Home Mortgage Disclosure Act, 12 U.S.C. 2801 et seq.
IA Insurance Application: An order determining whether deposit insurance should be granted to a banking organization. 12 U.S.C. 1815 and 1816.
j Denial of Acquisition of Control: A denial of a request by an individual to acquire control of a banking organization on the basis of certain enumerated factors and specific factual circumstances. 12 U.S.C. 1817(j).
jj Denial of Application to Serve as Senior Executive Officer/Director: A denial of a request by a banking organization that is classified as being in "troubled condition" to employ new senior management or to change the job responsibilities of existing senior management. 12 U.S.C. 1831i.
k Assessment of Civil Money Penalty: Banking organizations and institution-affiliated parties may be assessed monetary penalties for engaging in unsafe or unsound banking practices or violations of law or failure to comply with an order issued by the appropriate Federal banking regulator. 12 U.S.C. 1818(i). Monetary penalties are also accessed for the failure to file accurate call reports. 12 U.S.C. 1817 (a)
kk Cross Guaranty: The FDIC may assess bank affiliates monetary damages for estimated losses that the deposit insurance fund may suffer when a banking organization fails. 12 U.S.C. 1815(e).
L Denial of Section 19 Application: A denial of a request to be employed made on behalf of an individual, who has been convicted of, or entered into a pretrial diversion or similar program for, criminal offenses involving dishonesty, breach of trust, or money laundering. 12 U.S.C. 1829.
OA Other Action: This involves miscellaneous orders including suspension, revocation, withdrawal or nullification of applications previously approved such as the opening of a new branch by a banking organization.
p Termination of Deposit Insurance (Institution Does Not Have Deposits): A banking organization may seek to terminate its insured status when it is no longer in the business of receiving deposits. This action is usually undertaken voluntarily by the institution. Once the FDIC approves an institution's request to terminate its deposit insurance, the institution may discontinue paying insurance premiums. 12 U.S.C. 1818(p).
PCAA PCA Directive Ordering Corrections or Prohibition: An order requiring certain corrective measures be taken to protect a banking organization's capital level based upon certain statutory remedies that are dictated by the bank's capital condition. 12 U.S.C. 1831o.
PCAD PCA Directive Ordering Dismissal: An order requiring the dismissal from employment of an individual who has caused the deterioration of a banking organization's capital level. 12 U.S.C. 1831o.
PCAP PCA Directive Ordering Filing/Implementation of Plan: An order requiring a banking organization to develop and implement a plan to raise its capital level. 12 U.S.C. 1831o.
PCAR PCA Reclassification: An order changing the capital classification of a banking organization. 12 U.S.C. 1831o.
q Termination of Deposit Insurance (Institution Has Transferred Its Deposits): A banking organization may seek to terminate its insured status where it has transferred its deposits to another entity. Once the FDIC approves an institution's request to terminate its deposit insurance, the institution may discontinue paying insurance premiums. 12 U.S.C. 1818(q).
SA Self Appointment Receiver: The Board of Directors of the FDIC may appoint the FDIC as sole receiver of a banking organization, after consultation with the appropriate Federal banking regulator and the appropriate State supervisor (if any), if the Board determines that certain specified grounds exist and the appointment is necessary to reduce the risk that the applicable deposit insurance fund would incur loss with respect to the banking organization.
12 U.S.C. 1821(c); 12 U.S.C. 1831o(h).
ss Safety and Soundness Order: An order requiring a banking organization to take certain specified actions and to follow specified prohibitions when the bank either has failed to submit or to implement a plan setting forth safety and soundness standards that it must follow. 12 U.S.C. 1831p-1.
WA Written Agreement: A formal written agreement is entered between a banking organization and its appropriate Federal banking regulator. The written agreement requires that specific activities be prohibited and may require that certain actions be taken. It has the same effect as an order to cease and desist.
z Regulation Z: An order requiring a banking organization to reimburse customers for violations of consumer protection laws. 12 C.F.R. Part 226.

Last Updated 08/31/1999 legal@fdic.gov