The Treasury Department’s Office of the Comptroller of the Currency (OCC) cited three banks for unsafe and unsound business practices that mirror issues similar to what spurred last year’s banking crisis, including risks posed to bank investments by higher interest rates and liquidity concerns in the event of a bank’s failure.
In a press release issued Thursday, the OCC announced it entered into a formal agreement with First FS & LA for the bank’s “failure to develop and implement an appropriate strategic plan, appropriately manage and control liquidity and interest rate risks, implement effective Bank Secrecy Act/anti-money laundering (BSA/AML) internal controls,” and failing to appoint a BSA officer with sufficient expertise.
