Less than three years into his five-year term, Office of the Comptroller of Currency Comptroller Joseph Otting announced that he was leaving the position, one day after the regulator finalized its modernization of the Community Reinvestment Act rule.
Otting was confirmed to the position in November 2017 by a 54-43 vote and came into the role as the first comptroller in three decades who had experience in the banking industry, having previously served as vice chairman at U.S. Bank and President and CEO at OneWest Bank.
“It has been my distinct honor to serve the United States and this administration as the 31st Comptroller of the Currency,” Otting said in a release announcing the move. “I am extremely proud of what the women and men of the agency have accomplished to promote economic opportunity, eliminate unnecessary regulatory burden, and operate the agency in a more effective and efficient manner.”
Chief Operating Officer Brian Brooks has taken over as the acting comptroller. He previously served as the chief legal officer at Coinbase and worked before that at Fannie Mae and OneWest Bank.
“The agency and the nation are fortunate that the OCC has a deep bench,” Otting said. “Brian and the Executive Committee are extremely well suited to continue the agency’s important work and succeed in its mission of ensuring banks operate in a safe, sound, and fair manner. Most importantly these leaders can depend on the 3,600 dedicated OCC professionals who thanklessly and tirelessly serve this nation by ensuring our federal banking system remains the world’s envy and capable of meeting the financial needs of Americans everywhere from Main Street to Wall Street, just as the agency has for 157 years.”
Otting earned praise and thanks from the industry as he announced his departure.
“As the first comptroller in more than 30 years with banking experience, Joseph Otting brought not only a clear vision of what he wanted to accomplish but also real-world banking experience,” Consumer Bankers Association President and CEO Richard Hunt said in a statement. “Comptroller Otting came with clear goals in mind and during his tenure improved the efficiency of the OCC, encouraged banks to reenter the small-dollar lending space and laid out his roadmap for a modernized CRA.”
American Bankers Association President and CEO Rob Nichols said in a statement that the association appreciated Otting’s leadership and willingness to take on difficult issues.
“His previous experience as a banker gave him a unique understanding of how the industry can best serve its customers and communities, while also maintaining safety, soundness and consumer protections,” Nichols said. “On his watch, Comptroller Otting took important actions that will help stabilize and grow the economy, and he started the long-overdue national conversation on modernizing CRA rules. We welcomed his interest in hearing from all stakeholders, and we know the OCC will continue in that spirit when Brian Brooks takes over as acting comptroller.
“We wish Joseph Otting the best in his future endeavors, and we look forward to working with First Deputy and Chief Operating Officer Brooks. The OCC will benefit from his own significant banking and regulatory policy experience.”
In a release announcing Otting’s departure, the OCC cited the CRA rule changes as one of the agency’s accomplishments in his tenure. It also cited new capital and liquidity rules, easing of restrictions on small-dollar lending, and fundamental changes to the agency’s staffing.
“The OCC also took steps under Comptroller Otting to improve how it operated by streamlining decision making, empowering examiners and staff, and investing in the future of the agency's employees and infrastructure by increasing funding for recognition and training, and modernizing the tools and technology that support the supervision of the federal banking system,” the release stated. “At the same time, the agency reduced operating costs by more than $156 million from the agency's 2018 budget and passed on those savings to banks and savings associations by reducing assessments the agency charges by 20 percent over two years.”
National Credit Union Administration Chairman Rodney Hood said goodbye to Otting as well.
“Having known Joseph for many years prior to our time as federal financial regulators, I have witnessed firsthand his resilient commitment and significant impact on the financial services industry,” Hood said in a statement. “I commend him 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. It has indeed been an honor to serve alongside him, and I wish him all the best in his future endeavors.”