BU Now » bank regulation

To bank regulator stepping down

Dick Taffe — Fri, 09 Jul 2010 20:40:03 +0000

In a surprise announcement, Comptroller of the Currency John Dugan (r.) says he will step down next month as the top U.S. bank regulator. Appointed by President George Bush, Dugan was instrumental in shaping the “stress tests” for the largest financial institutions, but often sparred with FDIC Chairwoman Sheila Bair about consumer matters. Former Federal Reserve Bank examiner Mark Williams, who teaches finance at the School of Management, say choosing Dugan’s successor is an opportunity for the Obama administration to send a signal that our banks will be held to a higher accountability and scrutiny.

“It is important to not repeat the error of the past and appoint a former lobbyist, as was Dugan, who is banker friendly. As an important industry watchdog, the head of the OCC needs to set the tone that banks will be regulated — not coddled.”

Contact Mark Williams, 617-358-2789, williams@bu.edu

Regulators pressuring banks

Dick Taffe — Fri, 31 Jul 2009 15:34:38 +0000

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, ckhurley@bu.edu

Thrift regulator under fire

Dick Taffe — Fri, 22 May 2009 14:48:39 +0000

With the collapse of Miami-based BankUnited on the heels of failures by IndyMac and Washington Mutual, the federal Office of Thrift Supervision is coming under increased scrutiny for failing to appropriately oversee the nation’s thifts. School of Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law, says the OTS is a likely target for elimination if Congress decides to overhaul the web of financial regulatory agencies.

Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu