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FDIC Clarifies When Cease-and-Desist, Consent Orders May be Terminated

FDIC Clarifies When Cease-and-Desist, Consent Orders May be Terminated

Posted: Jul 27 2022
The FDIC has updated two chapters of its manual on formal and informal enforcement actions to provide clarity regarding the agency’s minimum standards for terminating cease-and-desist and consent orders issued under Section 8(b) of the Federal Deposit Insurance Act.
 
The updates clarify that cease-and-desist or consent orders may be terminated if: the institution is in full compliance with all provisions of the order and has fully corrected legal violations, unsafe or unsound practices or other conditions that led to the issuance of the order; any provisions deemed “not in compliance” have become outdated or irrelevant; or deteriorations or any provisions deemed “not in compliance” lead to issuance of a new or revised formal action.
 
To read more, visit: https://www.fdic.gov/news/financial-institution-letters/2022/fil22034.html
 
 

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