FDIC Amends Enforcement Action Manual And Clarifies Terminations Of Orders

On July 25, the Federal Deposit Insurance Corporation ("FDIC") announced amendments to its Enforcement Actions Manual. The amendments to chapters 1 and 4 update and clarify the FDIC's approach to terminating cease-and-desist orders and consent orders issued under section 8(b) of the Federal Deposit Insurance Act ("FDI Act").

The FDIC reiterated that "Section 8(b) of the FDI Act authorizes the FDIC to issue a cease-and-desist order, which is titled a 'consent order' if the action is not contested, when the facts reasonably support the conclusion that an insured depository institution has engaged, or is about to engage, in

• An unsafe or unsound practice in conducting the business of the institution, or