Texas Bank Leaders Lose Bid to Fight OCC Case in Federal Court

A federal banking regulator can continue to pursue a civil money penalty against former executives of a failed Texas bank through an administrative proceeding, a federal appeals court ruled.

The Office of the Comptroller of the Currency and other federal banking regulators have the statutory authority to seek civil money penalties in administrative proceedings, the US Court of Appeals for the Fifth Circuit said in a Monday ruling.

The OCC hit Saul Ortega and David Rogers from First National Bank of Edinburg, Texas, with civil money penalties of $250,000 each for their conduct prior to the bank’s 2013 failure. ...