by Jeff Sovern
Here's what the Times's Joe Nocera wrote in his column today:
[The OCC] is a classic captured regulator. As American Banker pointed out recently, the Promontory Financial Group, a prominent banking consulting firm founded by Eugene Ludwig, a former comptroller of the currency, recently hired the O.C.C.’s general counsel, Julie Williams. And where did the O.C.C. find its new general counsel, Amy Friend? From the Promontory Financial Group!
My hope is that the OCC is less captured than it once was. After all, Julie Williams left after Obama appointee Thomas Curry took over. Time will tell.
The history of the OCC bedding down with the Big Banks was epitomized by the disgraceful “legal opinion: declaring the this corrupt agency could sue states engaged in acting to protect consumers, claiming pre-emption
The O.C.C. is completely arrogant about being captured. I spoke with their press officer and quoted Senator Dodd, Chairman of the Senate Banking Committee, who said on television, “The O.C.C. does not appear to be enforcing consumer law.”
The O.C.C. press officer laughed heartily and said: “We don’t listen to him. We listen to the House Banking Committee.” Snubbing a senator seems pretty arrogant. I told Dodd this and he pointed out to me that the banking lobby was number 2 after the NRA in power.
I spoke with Rep. Barney Frank. He didn’t seem surprised. He pointed out that the House members have more specialized expertise than the senators.