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The Federal Deposit Insurance Corp. took action against six lenders and ended orders against 14 firms in the FDIC's latest monthly roundup of enforcement actions.
April 25 -
The Federal Deposit Insurance Corp. issued two consent orders and terminated 21 enforcement actions in February, according to its latest roundup of regulatory orders.
March 28
The Federal Deposit Insurance Corp. is looking to ban a former Tennessee banker from the industry following his institution's 2012 failure.
The FDIC disclosed Friday a notice of its intention to prohibit Michael R. Sapp, the former president and chief executive of Tennessee Commerce Bank in Franklin, from further participating in the affairs of an insured institution without prior written consent of the FDIC or other appropriate federal regulators. The $1.2 billion-asset Tennessee Commerce was seized by regulators
The FDIC alleges Sapp "engaged in, caused, or allowed violations of law and a series of unsafe and unsound actions designed to conceal the bank's losses" on loans to Diversified Financial Resources and DDI Leasing. The FDIC is also looking to assess a $485,000 civil money penalty.
"I am looking forward to clearning my name and I refuse to give in to what seems like FDIC extortion," Sapp said in a brief interview.
The FDIC's notice to Sapp was disclosed as part of the FDIC's monthly regulatory roundup
The FDIC issued supervisory prompt corrective action directives to the $64 million-asset Highland Community Bank in Chicago and the $149 million-asset State Bank of Herscher in Illinois. The orders call for the significantly undercapitalized banks to immediately increase their capital levels or accept acquisition offers.
Grant County Deposit Bank in Willliamstown, Ky., was ordered to submit a revised management plan and increase its board participation. The FDIC also directed the bank to maintain a leverage ratio of 9% and a total risk-based capital ratio of 12%. Additionally, Grant County Deposit was required to reduce its position in substandard assets above $200,000, revise its investment policies and develop a written profit plan.
GSL Savings Bank in Guttenberg, N.J., was ordered to hire a third-party consultant to assess its interest-rate risk and management structure. The FDIC also directed the bank to develop a capital plan designed to maintain an 8% leverage capital ratio. It was also ordered to revise various bank policies and submit profit and strategic plans.
The FDIC also terminated or modified orders for the following banks: Goshen Community Bank in Goshen, Ind.; Savoy Bank in New York, N.Y.; Mohave State Bank in Lake Havasu City, Ariz.; Columbia Community Bank in Hillsboro, Ore.; Security Bank of California in Riverside; Ocean Bank of Miami, Fla.; Freedom Bank of Belington, W.Va.; Oconee State Bank of Watkinsville, Ga.; Vibra Bank of Chula Vista, Calif.; Macon Bank of Franklin, N.C.; Sunrise Bank of Albuquerque, N.M.; State Bank of Countryside, Ill.; First Security Trust Bank of Florence, Ky.; and Fort Davis State Bank of Fort Davis, Texas.
