Paradox: OTS Says More Time To Object Should Speed Approvals

The Office of Thrift Supervision increased to 25 days from 10 days the public comment period on applications such as requests for new charters.

The comment period begins on the day an application is filed, and the OTS may grant extensions on a case-by-case basis.

An OTS spokesman said the public comment period was lengthened to provide more opportunity for public input.

But Charlotte Bahin, regulatory counsel for America's Community Bankers, predicted that the new rule actually would reduce the time needed for application approvals, because regulators will be less likely to extend comment periods.

The new rule, released Thursday, also allows the OTS to conduct an "informal meeting" with any party that has filed a written request for one. The request must identify the issues to be discussed and the reasons why written correspondence would be insufficient. Informal meetings may be telephone calls or face-to-face.

Ms. Bahin said the meetings will be a "less confrontational" alternative to formal hearings.

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