Fed orders Mellon Bank to pay $16K over flood insurance violations

A civil money penalty (CMP) was assessed against The Bank of New York Mellon (New York City) over flood insurance violations under a consent order executed by the bank and the Federal Reserve Board Tuesday, the Fed said in a release Thursday.

The CMP, totaling $16,000, was to be forwarded to the Fed Board secretary and made payable to the National Flood Insurance Program (NFIP), which is administered by the Federal Emergency Management Agency. The payment was required upon execution of Tuesday’s order.

In the same release, the Fed announced it terminated a previous enforcement order with UCB Financial Group, Inc. (Atlanta, Ga.; the firm is now known as ABB Financial Group, Inc.) on Monday.

The order, executed in August 2010, required UCB Financial Group, a bank holding company for Atlanta Business Bank, to take “steps to ensure that the Bank complies with any supervisory action taken by the Bank’s federal or state regulator.” It also barred UCB’s declaration or payment of dividends, taking any dividends “or any other form of payment representing a reduction in capital” of the bank, stock issuances and other activities without prior approval. The agreement was executed by UCB, the Federal Reserve Bank of Atlanta and Georgia’s state banking commissioner.

Federal Reserve Board issues enforcement action with The Bank of New York Mellon and announces termination of enforcement action with UCB Financial Group, Inc.