WASHINGTON - The Office of Thrift Supervision last week ordered troubled thrifts and their holding companies to give the agency 30-days notice before hiring senior officers or adding anyone to their boards of directors.
The OTS regulation gives the agency the power to veto the appointments. The regulation codifies a practice that has been in effect for the past four years.
The rule applies to thrifts that are less tban two years old, fail capital requirements, receive adverse exam ratings, or are otherwise troubled. It also applies to thrifts or their holding companies that have had a change in control during the past two years, and to troubled holding comapnies.
