83 FR 27371 - Policy Statement on Interagency Notification of Formal Enforcement Actions

DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION

Federal Register Volume 83, Issue 113 (June 12, 2018)

The Federal Financial Institutions Examination Council has rescinded its Revised Policy Statement on ``Interagency Coordination of Formal Corrective Action by the Federal Bank Regulatory Agencies'' dated February 20, 1997. To assure onging coordination, the Board, the FDIC, and the OCC (collectively, ``the Federal Banking Agencies'' or ``FBAs'') are issuing this policy statement concerning Federal Banking Agency coordination of formal corrective action.

[Federal Register Volume 83, Number 113 (Tuesday, June 12, 2018)]
[Notices]
[Pages 27371-27372]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-12556]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

[Docket ID OCC-2018-0012]

FEDERAL RESERVE SYSTEM

[Docket No. OP-1609]

FEDERAL DEPOSIT INSURANCE CORPORATION


Policy Statement on Interagency Notification of Formal 
Enforcement Actions

AGENCIES: Board of Governors of the Federal Reserve System (Board); 
Federal Deposit Insurance Corporation (FDIC); and Office of the 
Comptroller of the Currency (OCC), Treasury.

ACTION: Notice of policy statement.

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[[Page 27372]]

SUMMARY: The Federal Financial Institutions Examination Council has 
rescinded its Revised Policy Statement on ``Interagency Coordination of 
Formal Corrective Action by the Federal Bank Regulatory Agencies'' 
dated February 20, 1997. To assure onging coordination, the Board, the 
FDIC, and the OCC (collectively, ``the Federal Banking Agencies'' or 
``FBAs'') are issuing this policy statement concerning Federal Banking 
Agency coordination of formal corrective action.

DATES: Applicable on June 12, 2018.

FOR FURTHER INFORMATION CONTACT: 
    OCC: Jessica Burrell, Counsel, Enforcement and Compliance, (202-
649-6200); William Jacquet, Assistant Director, Enforcement and 
Compliance, (202-649-6200). For the hearing impaired, TTY (202) 649-
5597.
    Board: Jason Gonzalez, Special Counsel, Legal Division, Board of 
Governors of the Federal Reserve System, 20th Street and Constitution 
Avenue NW, Washington, DC 20551. For the hearing impaired or users of 
Telecommunication Device for Deaf (TDD) only, call (202) 263-4869.
    FDIC: Sam Ozeck, Legal Division (202) 898-6736; George Parkerson, 
Division of Risk Management Supervision, (202) 898-3648.

SUPPLEMENTARY INFORMATION: The Federal Banking Agencies are issuing 
this policy statement concerning their coordination of formal 
corrective action.
    The text of the policy statement is as follows:

Policy Statement on Interagency Notification of Formal Enforcement 
Actions

    The FBAs are issuing this policy statement to promote notification 
of, and coordination on, formal enforcement actions among the FBAs at 
the earliest practicable date. This statement replaces the existing 
policy statement \1\ to incorporate and reflect current practices and 
is not intended as a substitute for informal communication that 
routinely occurs among the FBAs in advance of an enforcement action, 
including verbal notification of pending enforcement matters to 
officials and staff with supervisory and enforcement responsibility for 
the affected institution.
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    \1\ See 62 FR 7782 (Feb. 20, 1997).
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    When an FBA determines it will take a formal enforcement action 
against any federally insured depository institution, depository 
institution holding company, non-bank affiliate, or institution-
affiliated party, it should evaluate whether the enforcement action 
involves the interests of another FBA. Examples of such interests 
include unsafe or unsound practices or significant violations of law by 
an insured depository institution, non-bank affiliate, or depository 
institution holding company or misconduct by an institution-affiliated 
party that may have significant connections with an institution 
regulated by another FBA.
    If it is determined that one or more other FBAs have an interest in 
the enforcement action, the FBA proposing the enforcement action should 
notify the other FBA(s). Notification should be provided at the earlier 
of the FBA's written notification to the federally insured depository 
institution, depository institution holding company, non-bank 
affiliate, or institution-affiliated party against which the FBA is 
considering an enforcement action or when the appropriate responsible 
agency official, or group of officials, determines that formal 
enforcement action is expected to be taken.
    The scope of the information shared by the notification may depend 
on the gravity of the interests of the other FBA(s) and be determined 
on a case-by-case basis by the FBA providing the notification. The 
information shared, however, should be appropriate to allow the other 
FBA(s) to take necessary action in examining or investigating the 
financial institution or institution-affiliated party over which they 
have jurisdiction.
    If two or more FBAs consider bringing a complementary action (e.g., 
action involving a bank and its parent holding company), those FBAs 
should coordinate the preparation, processing, presentation, potential 
penalties, service, and follow-up of the enforcement action.

    Dated: June 6, 2018.
Joseph M. Otting,
Comptroller of the Currency.
    By order of the Board of Governors of the Federal Reserve 
System, June 4, 2018.
Anne E. Misback,
Secretary of the Board.
    Dated at Washington, DC, this day of March 20, 2018.

Federal Deposit Insurance Corporation.
Valerie J. Best,
Assistant Executive Secretary.
[FR Doc. 2018-12556 Filed 6-11-18; 8:45 am]
 BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P