Recent FDIC enforcements include $24k flood insurance penalty

Of the six enforcement orders made public by the federal insurer of banks deposits in September, one of them involved a $24,000 civil money penalty assessed over findings of violations of the Flood Disaster Protection Act (FDPA).

The penalty order notes that Farmers and Merchants Bank of Milford, Neb., entered into a consent agreement with the Federal Deposit Insurance Corp. (FDIC) in August. It said the FDIC found the bank had engaged in a “pattern or practice” of committing violations of the FDPA and the agency’s implementing rule.

The remaining orders, one of them reportedly dating back to January, included consent order, two terminations of consent orders, one order terminating decision and order to cease-and-desist, and one order of termination of insurance.

FDIC Makes Public September Enforcement Actions

September 2021 Enforcement Decisions and Orders