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Large Bank Supervision: OCC Could Better Address Risk of Regulatory Capture

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Report Type Reports and Testimonies
Report Date Jan. 24, 2019
Release Date Feb. 25, 2019
Report No. GAO-19-69
Summary:

“Regulatory capture” is when regulators act in the interest of the industry they’re regulating, rather than in service of the public good. This can be a significant problem in banking regulation, where regulators may be swayed by future job offerings and more.

We looked at ways to reduce the risk of regulatory capture at the Office of the Comptroller of the Currency—which supervises the nation's largest banks—and found weaknesses. For example, when OCC selects a team to examine a bank, it does not have a policy to check data that could indicate conflicts of interest.

We made 9 recommendations to improve OCC's approach to regulatory capture.

 

Seal of the Office of the Comptroller of the Currency

Seal of the Office of the Comptroller of the Currency

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