FDIC Hits Seven Banks with Enforcement Actions

http://www.americanbanker.com/issues/178_144/fdic-hits-seven-banks-with-enforcement-actions-1060910-1.html

The Federal Deposit Insurance Corp. took seven enforcement actions and freed 13 banks from orders in June, according to a list of regulatory actions released Friday.
The new enforcement actions included five consent orders. The banks affected were the $388 million-asset Bank of Union in El Reno, Okla.; the $93 million-asset First Security Trust Bank in Florence, Ky.; the $16 million-asset Citizens State Bank and Trust Co. in Woodbine, Kan.; the $10 million-asset First Electronic Bank in Sandy, Utah; and the $1.7 billion-asset First California Bank of Westlake Village, Calif.
First Electronic and a First California affiliate were also fined by the FDIC. First Electronic was ordered to pay a civil penalty of $250,000 and to pay restitution to its customers in connection with flawed account disclosures. First California's Cornerstone Marketing affiliate was ordered to pay $25,000 over violations related to reloadable cards the bank offered. In May the FDIC announced a $600,000 penalty against First California related to the violations.