Bank Civil Money Penalties Insurance & The FDIC

Bankers got a note a month ago from the FDIC telling them that civil money penalties insurance on a bank directors’ and officers’ insurance policy was a no-no.

CMP is a topic I have written about a fair amount. Today I had a conversation with several bankers and an association executive on the issue. I thought a video might be warranted.

Two years ago I first learned that the FDIC did not like Civil Money Penalties on bank directors’ and officers’ insurance. A year ago I started telling my banks to remove the CMP (Civil Money Penalties) coverage from their D&O.

I don’t think there is any wiggle room now – if the FDIC comes into your bank and finds CMP coverage – you got some ‘splainin’ to do, Lucy!