WASHINGTON — Comptroller of the Currency John Dugan said Tuesday that the Federal Deposit Insurance Corp. is not the right agency to handle the resolution process for systemically important non bank institutions.
"I don't know where it should be but I worry the FDIC is not the right place to do that," Dugan told an American Bankers Association conference.
Dugan argued that the FDIC is not experienced with nonbank institutions, and is too busy dealing with its current authority to resolve failing banks and thrifts.
Treasury Secretary Tim Geithner recommended last week that the FDIC receive resolution powers over all systemically important financial institutions, arguing it is the only agency with relevant experience. Senate Banking Committee Chairman Chris Dodd reiterated Tuesday that he also still thinks the agency is the best place for systemic resolution powers.
Dugan, who is a member of the FDIC's five-person board, also used his speech to push for reforming the loan loss reserve system and the consolidation of bank regulators.