# 12 C.F.R. § 308.128 (2026): Grounds for cease-and-desist orders

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_128

## Section

- **Citation:** 12 C.F.R. § 308.128 (2026)
- **Heading:** Grounds for cease-and-desist orders
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 12 CFR: Banks and Banking / Chapter III: FEDERAL DEPOSIT INSURANCE CORPORATION / Part 308: RULES OF PRACTICE AND PROCEDURE / Subpart G: Rules and Procedures Applicable to Proceedings Relating to Cease-and-Desist Orders / § 308.128: § 308.128   Grounds for cease-and-desist orders.

## Text

(a)
General rule.
The Board of Directors or its designee may issue and have served upon any insured nonmember bank or an institution-affiliated party a notice, as set forth in § 308.18 of the Uniform Rules for practices and violations as described in § 308.127.
(b)
Extraterritorial acts of foreign banks.
An act, violation or practice committed outside the United States by a foreign bank or an institution-affiliated party that would otherwise be a ground for issuing a cease-and-desist order under paragraph (a) of this section or a temporary cease-and-desist order under § 308.131 of this subpart, shall be a ground for an order if the Board of Directors or its designee finds that:
(1) The act, violation or practice has been, is, or is likely to be a cause of, or carried on in connection with or in furtherance of, an act, violation or practice committed within any state, territory, or possession of the United States or the District of Columbia which act, violation or practice, in and of itself, would be an appropriate basis for action by the FDIC; or
(2) The act, violation or practice, if proven, would adversely affect the insurance risk of the FDIC.

## Nearby sections

- [12 C.F.R. § 308.127 (2026) § 308.127   Scope.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_127.md)
- [12 C.F.R. § 308.128 (2026) § 308.128   Grounds for cease-and-desist orders.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_128.md)
- [12 C.F.R. § 308.129 (2026) § 308.129   Notice to state supervisory authority.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_129.md)
- [12 C.F.R. § 308.130 (2026) § 308.130   Effective date of order and service on bank.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_130.md)
- [12 C.F.R. § 308.131 (2026) § 308.131   Temporary cease-and-desist order.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_131.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_128. Check the current official text before relying on it. Not legal advice.