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FDIC Enforcement Decisions and Orders |
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Board adopts ALJ's recommendation that a consent order which operates only prospectively (to prohibit future unsafe or unsound banking practices) be entitled "Order," not "Order to Cease and Desist" as requested by enforcement counsel.
[.1] Consent OrdersProspective Application
[.2] Unsafe or Unsound PracticesRemediesProspective Order
In the Matter of
The Board of Directors of the Federal Deposit Insurance Corporation ("FDIC"), having reviewed the record, including the Recommended Decision of the Administrative Law Judge, FDIC Enforcement Counsel's Exceptions, and applicable law, hereby adopts the Order of the Administrative Law Judge.
Dated at Washington, D.C., this 5th day of May, 1992.
In the Matter of
[.1] Finally, Petitioner argues that a remedy "entitled 'Order' is likely to cause confusion to the public as to the nature of the order ..." Respondent replies that a remedy entitled "Order to Cease and Desist" is far more likely to confuse the public by prompting the not-unreasonable inference that the Bank has committed unsafe or unsound banking practices in the past and is being enjoined from past, present and future transgressions. Because the bank has not committed an unsafe or unsound practice, it is not in the same position as other institutions and institution-affiliated parties who have agreed to the imposition of consent orders. I find Respondent's argument persuasive and conclude that the title requested by Petitioner would mislead the public which, as Petitioner correctly notes, has come to recognize and understand the import of the words "cease and desist" in the context of FDIC remedial provisions.
[.2] For the foregoing reasons, I find that the imposition of an order to cease and desist any past practice is unwarranted in this proceeding. I further find that neither facts, law nor policy have been shown to require that the remedy in this proceeding be entitled "Order to Cease and Desist." Finally, I find that relief entitled "Order" will achieve the objectives underlying Section 8(b) of the Act and will completely remedy the unsafe or unsound banking practices alleged in the Notice.3
IT IS ORDERED that Lyndonville Savings Bank and Trust Company, Lyndonville, Vermont, and its institution-affiliated parties, shall not:
For purposes of this ORDER, the terms:
(i) "institution-affiliated party" shall be defined as set forth in Section 3(u) of the Federal Deposit Insurance Act, 12 U.S.C. § 1813(u); |
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Last Updated 6/6/2003 | legal@fdic.gov |