On Friday, TCF National Bank, the primary subsidiary of
TCF Financial Corporation
) consented to pay a $10 million federal penalty. The payment is
in a bid to settle the regulatory reporting issue of the company
with the Office of the Comptroller of the Currency (OCC). The
penalty is expected to impact fourth-quarter earnings of TCF
Financial by 6 cents per share.
FIRST INTST MT (FIBK): Free Stock Analysis
HUNTINGTON BANC (HBAN): Free Stock Analysis
HEARTLAND FINCL (HTLF): Free Stock Analysis
TCF FINL CORP (TCB): Free Stock Analysis
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Several years ago, TCF National Bank failed to comply with the
Bank Secrecy Act (BSA). Upon scrutinizing the transactions
between Nov 2008 and Jul 2010, federal regulators discovered
faulty practices being exercised by the bank. They concluded that
the bank failed to file timely suspicious activity reports as was
required under BSA.
Notably, federal regulators discovered some cash transactions
taken up by the bank, signifying wire transfers of funds without
mention of the source and purpose of such funds. Moreover, some
instances which indicated TCF bank's failure to adequately report
potential terrorist financing were revealed.
The $10 million settlement follows the Jul 2010 BSA-related
consent order with the OCC that intended TCF bank to correct
deficiencies in its anti-money-laundering programs. Therefore,
the banks incorporated certain broad changes to reinforce its BSA
compliance program along with the settlement in order to resolve
Thus, such initiatives taken by the OCC along with TCF bank and
the regulators is a step forward towards ensuring continued
protection and security of the deposits made by the customers.
Moreover, OCC's guidance in strengthening the BSA program for the
bank would help improve the safety of the banking system.
Overall, firms in the U.S. are actively responding to legal and
regulatory pressures, displaying competence to encounter
impending challenges. However, the potency of the sector is not
expected to return to its pre-recession peak anytime soon.
Economic intricacies, both domestic and overseas, may lead to
more disappointments in the upcoming quarters.
Currently, TCF Financial carries a Zacks Rank #3 (Hold). Among
Heartland Financial USA Inc.
) carries a Zacks Rank #1 (Strong Buy), while
Huntington Bancshares Incorporated
First Interstate Bancsystem Inc.
) carry a Zacks Rank #2 (Buy).