OCC falls short in keeping banks at arms-length, congressional watchdog report says

27 February 2019 9:40am
The US Office of the Comptroller of the Currency has done too little to shield its examiners from large banks’ potential influence, a shortcoming that also played a role in the financial crisis, a congressional watchdog said.

“OCC’s management has identified regulatory capture as a risk, but its approach to mitigating this risk is narrow,” the non-partisan Government Accountability Office said in a report yesterday. “Regulators should be independent of inappropriate influence, including undue influence from the industry they are regulating".

The report tagged the agency, headed by Trump appointee Joseph Otting, for not doing enough to root out employees’ potential conflicts of interest, guard against inducements from banks and their consultants, and document contacts with banks.