Credit union regulator is first among federal regulators to bid bank regulator fond farewell

Outgoing Comptroller of the Currency Joseph Otting received a warm farewell from the board chairman at the federal credit union regulator Friday, the first (and, so far, only) of the national bank regulator’s federal regulator colleagues to do so.

National Credit Union Administration (NCUA) Board Chairman Rodney Hood, in a release, commended Otting for “his leadership and service to our nation and to the Office of the Comptroller of the Currency. Under his leadership, the agency has grown and thrived with its renewed focus on economic opportunity and regulatory reform,” Hood said.

Otting, who has served as comptroller since November 2017, publicly announced his resignation as leader of the Office of the Comptroller of the Currency (OCC). His resignation is effective May 29; his designated successor is Brian P. Brooks, now the chief operating officer of the agency.

NCUA Board Chairman Rodney Hood

The day before Otting announced his resignation, the OCC released a final rule rewriting rules implementing the Community Reinvestment Act (CRA), an anti-redlining law. The OCC finalized the rules on its own, without being joined by its partner in proposing the rule, the Federal Deposit Insurance Corp. (FDIC). The third federal banking agency with responsibility for enforcing the CRA rules, the Federal Reserve, did not join in the proposal.

The proposal has faced wide criticism, particularly from Democratic lawmakers, as an effort to water down CRA requirements (which essentially require banks to invest in the communities from which they take deposits, particularly in low- to moderate-income areas – which often include minority neighborhoods). House Financial Services Chairwoman Maxine Waters (D-Calif.) has vowed Congress “will not let this final rule stand.”

Hood, in his statement, said he has known Otting for many years prior their tenures as federal financial regulators (both Otting and Hood were appointed by President Donald Trump). “I have witnessed firsthand his resilient commitment and significant impact on the financial services industry,” Hood said.

“It has indeed been an honor to serve alongside him, and I wish him all the best in his future endeavors,” he added.

NCUA Chairman Hood Commends Comptroller Otting for His Service to the OCC