Comments of the Week: OCC Revamp, Full-Scope Exams, Fair Lending

On whether the OCC should be run by a commission: On whether the OCC should be run by a commission: "Yes - let's structure the OCC just like the SEC because we all saw how well THAT worked."

Related Article: If CFPB Needs a Commission, Why Shouldn't the OCC?

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On whether the CFPB should be run by a commission: On whether the CFPB should be run by a commission: "Time to stop wasting energy fighting old battles. [The] CFPB is here to stay. Let's confirm a director and roll up our sleeves and make it work."

Related Article: If CFPB Needs A Commission, Why Not OCC?

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On FDIC vice chairman Thomas Hoenig's call for 'full scope' big bank exams: On FDIC vice chairman Thomas Hoenig's call for 'full scope' big bank exams: "Hoenig is a champion for taxpayers and free market capitalism."

Related Article: FDIC's Hoenig Proposes 'Full Scope' Big Bank Exams

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On why 'full scope' big bank exams are necessary: On why 'full scope' big bank exams are necessary: "The problem is that it is far easier to thoroughly examine a small bank and have an impressive exam report than it is to go to a megabank and really see what's going on. Examiners follow the path of least resistance which is a lesson not lost on the megabanks. It's time we change that."

Related Article: FDIC's Hoenig Proposes 'Full Scope' Big Bank Exams

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On community banks possibly pursuing nontraditional sources of revenue: On community banks possibly pursuing nontraditional sources of revenue: "This means they are increasing their credit, market, operational and reputational risks. Aren't community banks inviting some Basel-like framework on themselves if they continue to chase yield?"

Related Article: The Risky Businesses of Banks Chasing Yield

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On FHFA killing a plan to cut premiums for replacement homeowners insurance on Fannie Mae loans:  On FHFA killing a plan to cut premiums for replacement homeowners insurance on Fannie Mae loans: "This has the smell of rotten politics all over it."

Related Article: FHFA Kills Fannie Mae Force-Placed Insurance Plan

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On HUD's new fair lending rule: On HUD's new fair lending rule: "The problem with the application and interpretation of many fair lending rules is that they preclude any possibility of 'stretching' to make a loan to someone who clearly doesn't qualify. If you stretch for one, you're punished if you don't stretch for all."

Related Article: HUD Rule Renews Fair-Lending Fears

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On HUD's new fair lending rule, which will likely help borrowers to win disputes with lenders: On HUD's new fair lending rule, which will likely help borrowers to win disputes with lenders: "I think there is a constitutional issue when guilt is presumed unless innocence is proven."

Related Article: HUD Rule Renews Fair-Lending Fears

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On whether more must be done regarding housing reform: On whether more must be done regarding housing reform: "The government needs to back off the housing market and let private capital be a bigger player."

Related Article: Lawmakers Say More Must Be Done on Housing Following Obama Address

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On the advice that bankers should stop lying if they want to stay out of trouble: On the advice that bankers should stop lying if they want to stay out of trouble: "While we're at it, can we add a few more groups to the list? I'm thinking if we could have rating agencies, Wall St. … and maybe [the] government also tell the truth, the world would be a better place. But I don't see that happening anytime soon either."

Related Article: Want to Keep Your Bank Out of Trouble? Easy, Don't Lie

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On rolling back FDIC deposit coverage limits: On rolling back FDIC deposit coverage limits: "Don't forget that when you remove the bank-funded insurance coverage, you also remove all of the FDIC rules and regulations that will no longer be required to oversee the risk to the fund."

Related Article: Reduce Taxpayer Risk: Roll Back FDIC Limits

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On rolling back FDIC limits: On rolling back FDIC limits: "Yes, roll it back, right to zero. Politically and economically, deposit insurance by the government, like any other scheme of crony socialism, was a terrible mistake. The best way to restore sanity and probity to our capital markets is to get rid of it."

Related Article: Reduce Taxpayer Risk: Roll Back FDIC Limits

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American Banker readers share their views on the most pressing banking topics of the week. As excerpted from the Comments sections of AmericanBanker.com articles.

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