from the Kansas Fed
– this post authored by Raluca A. Roman
Enforcement actions against banks and their management officials, directors, and employees are important supervisory instruments. Regulators issue enforcement actions for violations of laws, rules, or regulations; breaches of fiduciary duty; and unsafe or unsound banking practices. In many cases, enforcement actions provide borrowers with new information about a bank’s health, its banking practices, or its treatment of customers that may be difficult to infer from other disclosures.