What is a “Cease & Desist Order?
A Cease and Desist Order (“Order”) is a formal action taken by bank regulators that requires bank management and the Board of Directors to stop certain practices or activities that could hurt the public. If the practices or activities are not stopped by the bank, then the bank regulator can take additional enforcement actions. The Order contains provisions requiring the bank to take specific steps within a period of time to correct all identified deficiencies noted during an examination of an institution. In Arizona, Towne Bank, a state-chartered bank, is currently the subject of an FDIC Order. The Bank is working to comply with the Order. The issuance of an Order does not necessarily mean that a bank is in imminent danger of failure. Banks usually meet the conditions required by the Order.
