The Treasury Department’s Office of the Comptroller of the Currency (OCC) reached agreements with two banks over concerns related to risk governance practices.
Michigan-based Comerica Bank & Trust and Illinois-based Lemont National Bank avoided penalties but accepted certain compliance undertakings in reaching agreements with the OCC announced Thursday.
The OCC found unsafe and unsound practices at Comerica related to the bank’s risk governance framework and internal controls. At Lemont, the agency found similar deficiencies related to liquidity risk management and capital planning.
Compliance considerations: By June 30, Comerica agreed to deliver a written program to mitigate risks in information technology, asset end of life, and its third-party relationships. The programs must include policies and procedures and a comprehensive risk assessment of systems, among other undertakings, according to its agreement.
Comerica’s board must ensure the bank adopts all the corrective actions in a timely manner and verify the bank adheres to the measures.
The OCC won’t consider Comerica in compliance until it has adopted, implemented, and adhered to all the corrective actions described.
Within 90 days, Lemont’s board must appoint a compliance committee of at least three members, a majority of which are directors but not employees or bank officers, according to its agreement.
The committee must implement numerous practices, including sending written reports to the board about the corrective actions needed to achieve compliance.
Bank response: In an emailed statement, Comerica said it takes the agreement “very seriously” and that it is a “top priority” for the indirect subsidiary.
Lemont did not respond to a request for comment.
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