Moran had served as interim president since the departure of Paul Vincent in May.
USAA Federal Savings Bank has appointed Michael Moran to serve as president of the embattled financial institution. Moran has served as the bank’s interim president since the departure of Paul Vincent in May.
His promotion took effect Thursday. “Our team will remain focused on building the Bank’s financial strength, enabling us to provide members with the competitive products and exceptional service they deserve,” Moran said in a statement. “USAA’s mission is one of a kind and I look forward to advancing the capabilities of this great association.” The bank, which changed its headquarters from San Antonio to Phoenix last year, had about $110.3 billion in assets as of Sept. 30, 2024. It earned $65 million in the first nine months of last year. It employed about 14,200 people at the end of the third quarter. REGULATORY TROUBLE: USAA Bank is back in banking regulator’s crosshairs over ‘unsafe or unsound practices’ Moran joined USAA in 2014 and has served in several roles at the bank, including chief financial officer and head of the business finance, pricing and financial planning and analysis area. Before joining USAA, he spent nearly a decade at Key Bank. He holds a bachelor’s degree in economics from Central Michigan University. His promotion to the top post at USAA Bank comes a little more than a month after a national banking regulator issued a cease and desist order against the institution for “new or continuing violations of law, rule, regulation.” The Office of the Comptroller of the Currency cited USAA Bank for engaging in “unsafe or unsound practices, including those related to management, earnings, information technology, consumer compliance and internal audit.” In addition, the bank failed to complete corrective actions that it was given in similar orders in 2019 and 2022. It’s now required to take “comprehensive corrective actions to enhance risk governance, compliance risk management, information technology management fraud risk management,” among other items. The order also imposes limitations on the bank’s ability to add new products and services, as well as on expanding its membership criteria. The OCC’s order terminated and superseded the other actions it has taken against USAA Bank. In 2019, the regulator uncovered evidence of 600 violations of the Servicemembers Civil Relief Act and the Military Lending Act. An $85 million civil penalty was assessed in 2020 for failing to implement and maintain an effective compliance risk management program. In 2022, the Financial Crimes Enforcement Network slammed the bank with $140 million in fines for deficiencies in its Bank Secrecy Act/Anti-Money Laundering compliance program. Federal law requires banks to be vigilant for signs that depositors might be laundering crime proceeds, financing terrorism or committing other financial misdeeds. If banks spot something amiss, it must be reported to regulators promptly. In 2022, USAA Bank admitted that it had “willfully failed” to meet those obligations. The OCC also assessed a $60 million civil penalty for that failure, but FinCEN agreed to credit that amount so the bank had to fork over only $140 million. The OCC didn’t assess any financial penalty with last month’s order. In a statement, USAA Bank Executive Chairman Brad Conner praised Moran. “I am confident he is the right leader to guide the Bank forward and he has the full support of the Board,” Conner said. Earlier this month, USAA made another big appointment when it named board member and longtime insurance executive Juan C. Andrade as its next leader, replacing retiring CEO and President Wayne Peacock. Andrade takes over April 2.
Federal Savings Bank Office Of The Comptroller Of The Currency Key Bank Financial Crimes Enforcement Network Central Michigan University Board Michael Moran Paul Vincent Juan C. Andrade Wayne Peacock Brad Conner San Antonio Phoenix Anti-Money Laundering Military Lending Act Servicemembers Civil Relief Act Bank Secrecy Act
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