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SRC Insights: Third Quarter 2008

Section 19 Letters

This year, the Federal Reserve began posting "Section 19 Letters" on the Board of Governors' public website. Section 19 Letters (referring to Section 19 of the Federal Deposit Insurance Act, 12 U.S.C. § 1829) are sent by the Federal Reserve Banks to institution-affiliated parties whom the Reserve Banks learn have been convicted of, or have entered into a pretrial diversion or similar program for, certain criminal offenses and are therefore prohibited from participating in the affairs of insured depository institutions, their holding companies, or credit unions without prior regulatory or judicial approval.

The Section 19 Letters posted on the website are intended to include only those individuals whose criminal offenses relate to their conduct at an entity supervised by the Federal Reserve. Section 19 Letters and all other formal enforcement actions are available on the Board of Governors' website Exterior Link.

The views expressed in this article are those of the author and are not necessarily those of this Reserve Bank or the Federal Reserve System.