Enforcement actions point out supervisory concerns over various aspects of a bank's operations and spur management actions to correct them. The purpose of this exercise is to acquaint you with the content of supervisory actions. After you finish, you should be able to list provisions you might find in an action and generally explain what the provisions are intended to correct.
The Office of the Comptroller placed a supervisory action on Alabama Trust Bank, National Association; Sylacauga, Alabama. Answer the follow questions on this and other actions the OCC took to restore the bank to sound financial condition.
Questions
When was the action placed on the bank?
The Consent Order uses the word stipulation. What does the word "stipulation" mean?
Which Article requires a strategic plan? Which Article requires additional capital? Which Article requires improved board oversight and more effective management?
What do you believe is nature of or the cause of problems behind the OCC issuing the order?
Was there a previous supervisory action in place on the bank? Does it provide any additional insights into the nature of the bank's problems? If so, describe the nature of the problem.
Who do you think the OCC is holding primarily accountable for ensuring that the bank meets the conditions set out in the Consent Order?
Was the Consent Order terminated? If so, when was it terminated and what was the basis for the termination?