Data from state and federal regulatory agencies show that approximately 10% of currently operating U.S. banks and thrifts are under "severe enforcement actions,'' issued since 2007, according to SNL Financial.
The firm's analysis found that 1,042 financial institutions were under prompt corrective action directives, cease and desist orders or formal agreement/consent orders. Credit unions weren't included in their analysis.
There are wide regional disparities, according to the report.
California, Minnesota, Illinois, Texas, Georgia and Florida each had more than 50 institutions under severe enforcement actions while each New England state had fewer than 10. Vermont and West Virginia had no financial institutions in that category.
The report noted several of the largest banks are under consent orders because of problems with their mortgage loan servicing operations. Those companies account for 65% of the nation's mortgage servicing industry.
Although not a direct comparison, the NCUA recently reported that a fewer percentage of insured shares are in CAMEL 3, 4, and 5 credit unions.
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