Skip to content
Awareity
Awareity

The Pre-Incident Prevention Experts

Primary Navigation Menu
Menu
  • Home
  • About
    • About
    • Awareity Butterfly Effect
    • In The News
    • Contact
    • Support
  • Solutions
    • Information Security Training
      • Information Security Awareness Training
      • Awareness and Accountability Vault (AAV)
    • Prevention and Connecting the Dots Platform
    • First Preventers Framework
    • Prevention and GAP Assessment
    • Threat Assessment Teams
    • Climate Surveys
    • Partners in Prevention
    • Industries
      • K12
      • Higher Education
      • Diocese
      • Healthcare
      • Government
      • Corporate
  • Blog
  • Info Request

Common Elements of Failed Financial Institutions (FDIC)

By: Awareity
On: November 5, 2009

Yes, I admit it…I was surfing the FDIC web site this past weekend and I was spending some time reviewing past Financial Institution Letters that the FDIC releases to advise the banking industry of supervisory changes and guidelines.

I came across a Financial Institution Letter for Newly Insured FDIC-Supervised Depository Institutions that included the new changes, as well as a list of common elements from troubled or failed institutions.

The list offers some potential lessons learned for organizational leaders (board of directors, executive management, compliance and others) and so I thought I would share the list.

  • Rapid growth
  • Over-reliance on volatile funding, including brokered deposits
  • Concentrations without compensatory management controls
  • Significant deviations from approved business plans
  • Noncompliance with conditions in the deposit insurance orders
  • Weak risk management practices
  • Unseasoned loan portfolios, which masked the potential deterioration during an economic downturn
  • Weak compliance management systems leading to significant consumer protection problems
  • Involvement in certain third-party relationships with little or no oversight

 

The list identifies the difficulties and complexities of “connecting the dots” and reminds bank leaders about many different types of “dots” that need better management to ensure better results.

If you are an organizational leader in the financial sector, this is good information!

2009-11-05
Previous Post: HHS Strengthens HIPAA Enforcement
Next Post: Ohio Storage Bins Stolen – One Man’s Trash Is Another Man’s….

READ MORE:

WATCH MORE:

Not seeing the form to request information? Drop us a line and we’ll send you more information!

Recent Blog Posts

Higher Ed Research facts, silos, and different actions

April 10, 2025

Community Research facts, silos, and different actions

April 10, 2025

K12 Research facts, silos, and different actions

April 3, 2025

Bias-based Decisions Can Be Overcome

December 4, 2024

First Preventers Believe…

October 18, 2024

Rick Shaw, Founder & CEO

Click here to learn more about Founder, CEO, and Prevention Specialist, Rick Shaw.

Awareity on Twitter

Tweets by Awareity

Search

Tweets by Awareity

Support

Need more information on
Support for AAV or TIPS?

Click here

What are you looking for?

Connect the Dots With Us!

 | |

Designed using Dispatch Premium. Powered by WordPress.

This site uses cookies to ensure that we give you the best experience on our website. Continuing to use this site means you are agreeing to the use of cookies.Ok