TALLAHASSEE, Fla. - A lawyer who spent more than two decades as general counsel for the Florida Bankers Association is the state's new chief regulator.
Gov. Charlie Crist appointed J. Thomas Cardwell as the new commissioner of the Office of Financial Regulations, a slot that was vacant for nearly a year after Don Saxon resigned in September 2008 amid allegations that the agency failed to stop criminals from working as mortgage brokers during the housing boom.
Cardwell's history with the banking industry raised a few eyebrows amongst consumer protection advocates and his strident fight against tax exemptions for credit unions when he worked for the Florida Bankers Association could give CUs pause. But the newly appointed commissioner insists he has "no agenda pro or against any industry, and that includes the credit unions."
"In this role my job is to enforce the policy that is on the books. It is not to make policy on these issues," he told Credit Union Journal. "I'm very interested in the safety and soundness of banks and credit unions. I'm interested in that they operate correctly under the consumer protection laws. I'm going to be focused on [that]."
Cardwell is hopeful that he will be able to help the regulator's office be pro-active and carry out its statutory mandates — something he said was tough for the agency to do without someone firmly at the helm. He also sees his previous job as one that has given him a keen insight into the positives and negatives in the financial industry, noting that his "first and foremost job" as chief regulator is to protect Florida consumers.
"It is pretty doubtful that the industry side of it will be able to pull the wool over my eyes," said Cardwell.
For credit unions that are concerned over his history with and connections to bankers, Cardwell pointed out that it was his job to work diligently for the FBA in his capacity as a lawyer, but that did not mean he shared the same views as his clients. "A lawyer represents clients, but the lawyer is not the client. To be a good lawyer you have to fully understand both sides of the question. I pride myself in my ability to make sure I understand the interests of all the parties involved," he said. "Credit unions and the banks that want to resolve the taxation and other issues should and will have to go to the legislature. I don't see this agency as a place to resolve policy issues between banks and credit unions, or any other institutions for that matter."
