During 2014, the number of enforcement actions brought by federal banking agencies1 continued a downward trend that began in 2011. Federal banking agencies issued 661 formal enforcement actions, representing more than a 55 percent reduction in enforcement actions since the high water mark in 2010. Notwithstanding this continued decline in enforcement actions, federal banking agencies and the Department of Justice (DOJ) imposed historically large fines against financial institutions in connection with certain enforcement actions during the year.
There were a number of trends that emerged from the enforcement actions issued by the federal banking agencies and the DOJ during 2014. First, the DOJ continued to be an active de facto regulator in the banking industry by bringing enforcement actions against large financial institutions related to the sale of mortgage backed securities. Second, several enforcement actions addressed high-profile issues related to foreign currency exchange trading (FX Trading). Third, the Consumer Financial Protection Bureau (CFPB) continued to ramp up its enforcement efforts. Finally, the DOJ’s ‘‘Operation Choke Point’’ continues to attract attention and controversy...
Originally published in Bloomberg BNA’s Banking Report, 104 BBR 1115, 6/9/15.
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