A total of 38 actions were levied by federal regulators in Q2 2019. The number of regulatory enforcement actions increased 52% from Q1 2019 and was driven primarily by an increase in activities from the FDIC and FRB as seen in Table 1.Starting from Q4 2018, the FDIC has been making up a larger percent of overall actions enforced by federal regulators: In Q4 2018, it enforced 29% of total actions; in Q1 2019, it enforced 32% of total actions; and in this quarter, FDIC enforced 11 actions, representing nearly 30% of total actions. Some of FDIC’s top regulatory focus areas are National Flood Insurance Program violations, and Governance Deficiencies related to Insufficient Capital and BSA Violation.
Compared to the same period in previous years, there was an overall downward trend in number of actions enforced by federal regulators: in the first two quarters of 2016 and 2017, federal regulators enforced over 90 actions on average; however, in the first two quarters of 2018, federal regulators only enforced 66 actions; and the number continued to decrease in 2019, with only 63 actions enforced in the first two quarters, representing a 32% decrease compared with same period in 2016.
Actions by Regulators
Actions by Action Types
Actions by Cited Regulations
Actions by Business Area
Monetary Penalty by Violation Types
A summary of this report was featured in The Wall Street Journal "Morning Risk" Report.
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Special thanks to contributors Caitlin Cremlin and Siwen Tang.