Andrea Mitchell Quoted in American Banker Article, "Citizens Could Spell Trouble for Other Banks"
August 12, 2015
Andrea Mitchell was quoted in Ian McKendry's American Banker article, "Citizens Fine Could Spell Trouble for Other Banks," on August 12, 2015.
Regulators on Wednesday charged Citizens' two subsidiaries with $34.5 million in fines and restitution, alleging that they engaged in "unfair and deceptive" practices by not investigating deposit discrepancies and effectively pocketing the difference.
But observers said discrepancies are relatively common among banks, and that regulators were using the action to put institutions on notice.
"Because deposit transactions frequently involve handwritten instruments and a machine is trying to interpret those items, deposit discrepancies are common to every institution," said Andrea Mitchell, a partner at BuckleySandler. "My sense is that the government has decided to send a message to the industry about a common banking practice, and rather than giving direction to the industry through a rulemaking or guidance, they are sending a directive to the industry through an enforcement action."
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