Comments of the Week: OCC Revamp, Full-Scope Exams, Fair Lending
February 15, 2013 9:46 AM
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? (Image: Bloomberg News)
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? (Image: Bloomberg News)
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 (Image: Bloomberg News)
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 (Image: Thinkstock)
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 (Image: Thinkstock)
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 (Image: Thinkstock)
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 (Image: Thinkstock)
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 (Image: Thinkstock)
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 (Image: Thinkstock)
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 (Image: Thinkstock)
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 (Image: Thinkstock)
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 (Image: Thinkstock)
