Are there penalties assessed if a participating entity issues debt identified as “guaranteed by the FDIC” in excess of the limit established by the FDIC?
Yes. A participating entity that issues guaranteed debt beyond the guarantee limit without authorization from the FDIC will have its assessment rate for all guaranteed debt doubled and will be subject to enforcement actions including the assessment of civil money penalties, as appropriate, including, for example, assessment of civil money penalties under section 8(i) of the FDI Act, removal and prohibition orders under section 8(e) of the FDI Act, and cease and desist orders under section 8(b) of the FDI Act.
Related Questions
- Are there penalties assessed if a participating entity issues debt identified as "guaranteed by the FDIC" in excess of the limit established by the FDIC?
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