The Office of the Comptroller of the Currency on Aug. 15 announced a number of enforcement actions in the banking sector.
The following list excludes actions previously covered by S&P Global Market Intelligence and those that do not meet criteria for news coverage. Click here to view S&P Global Market Intelligence's full database of enforcement actions against U.S. banks and thrifts.
Civil money penalty orders
The OCC on July 29 ordered MUFG Union Bank NA to pay $109,667 for violations of the Flood Disaster Protection Act. MUFG Union Bank neither admitted nor denied any wrongdoing when it agreed to the penalty imposed.
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The OCC on Aug. 1 ordered Scott Heintzelman, former president, director and senior trust officer of Northumberland, Pa.-based Northumberland National Bank, to pay a $100,000 fine for various violations including not considering market value and thus causing trust customers to pay or receive unfair prices for fixed-income securities, which caused the bank to reimburse $1.2 million to those customers; stealing $10,000 from a chronically ill trust customer; and ordering personnel to create fraudulent trust account statements in customers' accounts while providing guarantees of principal and earnings to around 19 trust accounts.
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The OCC on Aug. 5 ordered Carroll Green, president and director of DeRidder, La.-based Beauregard Federal Savings Bank, to pay a $5,000 fine for regularly incurring and maintaining overdraft charges in his business accounts and failing to address the issue.
It also ordered Rafeal Webb Stark, executive vice president and director of the bank, to pay a $15,000 fine for obtaining at least six loans without the board's approval. Three of these loans were obtained despite Stark exceeding his total general purpose amount and one loan contained unfavorable terms to the bank, according to the regulator.
Formal agreements
The OCC on July 17 found unsafe or unsound practices at Hope, Kan.-based First National Bank of Hope. It ordered the bank to create a compliance committee, the board to develop a written plan to improve the bank's loan portfolio management and for management to develop a plan to reduce the bank's problem loans to a "safe and sound level" over the next 12 months, among other things.
