Federal regulators reportedly have ratcheted up significantly the number of “memorandums of understanding” probation notices sent to troubled banks this year. The notices can force banks to shore up capital reserves or change management. School of Law Professor Cornelius Hurley, a former counsel to the Federal Reserve Board of Governors and now director of the Morin Center for Banking and Financial Law, says the moves underscore the need for regulatory reform.
“One does not get the sense that federal enforcement policy among the Fed, OCC, OTS, and the FDIC is coordinated in any way, as it would be if Obama’s original idea of a consolidated prudential regulator were implemented.”
Contact Cornelius Hurley, 617-353-5427, firstname.lastname@example.org