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FDIC Too ‘Focused’ on BSA, Too ‘Broad’ on Safety and Soundness in Bank Failure: Watchdog
By Brian Monroe
printFederal regulatory examiners focused too much on Bank Secrecy Act problems at the expense of missing safety and soundness issues during their examinations of a Los Angeles bank, a governmental watchdog found. In a 44-page material loss review published Sept. 1, the Office of Inspector General (OIG) for the Federal Deposit Insurance Corp. said that agency's oversight of the now defunct First Regional Bank was "primarily focused on Bank Secrecy Act-related issues with risk management deficiencies being addressed in a broad manner." While the FDIC ultimately conducted an onsite exam of the bank in February 2008, "BSA issues, not asset...
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