President Trump on Tuesday nominated Joseph Otting, the former chief executive of Pasadena’s OneWest Bank and an ally of Treasury Secretary Steven Mnuchin, to a key financial regulatory position.
The move drew fire from consumer advocates and Democrats, who pointed out that Otting would be in a position of overseeing banks even though one he headed up has run into trouble with regulators.
Otting is being tapped to be the comptroller of the currency, a powerful regulator who oversees federally chartered banks, the White House announced Monday night. Those include the banking arms of some of the largest financial institutions in the country, including JP Morgan Chase & Co. and Wells Fargo & Co.
His role with OneWest, which has been criticized for its foreclosure practices, made Otting’s nomination concerning, said Sen. Sherrod Brown (D-Ohio).
“If Mr. Otting didn’t deal fairly with the customers at his own bank, it’s difficult to see why he’s the best choice to look out for the interests of customers at more than 1,400 banks and thrifts across the country,” he said.
Brown is the top Democrat on the Senate Banking Committee, which must confirm the nomination.
The Office of the Comptroller of the Currency, which is an independent bureau of the Treasury Department, was a pivotal player in the $185-million settlement last year with Wells Fargo involving its creation of unauthorized accounts.
Otting would replace Keith Noreika, a banking industry lawyer whom Trump appointed last month as acting comptroller of the currency to replace Thomas Curry after his five-year term expired.
Source: Los Angeles Times
The post Former CEO of OneWest Bank is Trump’s pick for key financial regulatory post Jim Puzzanghera and James Rufus Koren/Jun 6, 2017 appeared first on Compliancex.
June 07, 2017 at 07:40PM
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