For Banks, a Single Agency to Answer To
Sen. Christopher J. Dodd says a merger would prevent regulator-shopping by banks.
(By Jahi Chikwendiu -- The Washington Post)
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How the proposal would affect the four existing federal bank regulators:
Federal Reserve: The Fed, in addition to overseeing the nation's money supply, supervises many state-chartered banks and the more complex institutions known as bank holding companies. Day-to-day supervisory work is carried out by the 12 regional Fed banks, which might have a dramatically reduced role under Dodd's approach.
Federal Deposit Insurance Corp.: The FDIC maintains an insurance fund that guarantees bank deposits against loss, a function that would be unchanged by Dodd's proposal. The agency would, however, lose its role overseeing state-chartered banks that are not members of the Federal Reserve system.
Office of the Comptroller of the Currency: As the primary regulator of nationally chartered banks, it would have its responsibility folded into the new combined regulator Dodd envisions.
Office of Thrift Supervision: Primary regulator of nationally chartered savings-and-loan institutions, or thrifts, it would be folded into the new combined regulator.
