Securant Bank & Trust of Menomonee Falls, Wisconsin was subject of this FDIC Consent Order dated August 20, 2010 Download Securant Bank & Trust FDIC Consent Order 2010-08-20. As preferred settlement trust vendor for one of the structured settlement industry's largest brokerage organizations, and an institution that was a recipient of TARP funds, it would not be unreasonable or unnatural for anyone to have at least a flicker of concern about Securant Bank & Trust or have questions about what such government notices mean.
A cease and desist order (consent order) is issued when the FDIC has “determined that it had reason to believe that the Bank engaged in unsafe or unsound banking practices and violations of law and/or regulations.” Source: ProblemBankList.com
No federally insured financial institution with the legal power to operate as a trust company failed in either 2008 or 2009. However, in 2010, five banks with trust assets WERE TAKEN OVER by the FDIC according to an article I recently read.
L. Scott Walshaw, Nevada’s former banking commissioner and regulatory advisor with Advisors Institutional, says sending a client to a bank that winds up failing can affect the relationship and it's better to do some homework, according the article in the The Trust Advisor Blog
For clients and trust beneficiaries, it is my understanding that unless the client’s assets are invested in the stock of a failed bank or in its money market funds beyond any insurance, or the assets are improperly titled, there should be no risk of asset loss and no problem other than inconvenience to a client of a trust department of a failed bank. Assets of a trust department are not assets of the bank.
We hope that Securant Bank & Trust Company thrives, but feel that this important information needs to be out there for our readers.