Title III: Transfer of Powers to the Comptroller of the Currency, the Corporation, and the Board of Governors

This title is also known as the ‘‘Enhancing Financial Institution Safety and Soundness Act of 2010’’.

This title aims to:

• provide for the safe and sound operation of the banking system of the United States
• preserve and protect the dual system of Federal and State-chartered depository institutions
• ensure the fair and appropriate supervision of each depository institution, regardless of the size or type of charter of the depository institution
• streamline and rationalize the supervision of depository institutions and the holding companies of depository institutions.

The elements of this title are:

Subtitle A—Transfer of Powers and Duties

• Transfer date
• Powers and duties transferred.
• Abolishment.
• Amendments to the Revised Statutes.
• Federal information policy.
• Savings provisions.
• References in Federal law to Federal banking agencies.
• Funding.
• Contracting and leasing authority.

Subtitle B—Transitional Provisions

• Interim use of funds, personnel, and property of the Office of Thrift Supervision.
• Transfer of employees.
• Property transferred.
• Funds transferred.
• Disposition of affairs.
• Continuation of services.
• .Implementation plan and reports.

Subtitle C—Federal Deposit Insurance Corporation

• Deposit insurance reforms.
• Elimination of procyclical assessments.
• Enhanced access to information for deposit insurance purposes.
• Transition reserve ratio requirements to reflect new assessment base.
• Permanent increase in deposit and share insurance.
• Management of the Federal Deposit Insurance Corporation.

Subtitle D—Other Matters

• Branching.
• Office of Minority and Women Inclusion.
• Insurance of transaction accounts.

Subtitle E—Technical and Conforming Amendments

• Effective date.
• Balanced Budget and Emergency Deficit Control Act of 1985.
• Bank Enterprise Act of 1991.
• Bank Holding Company Act of 1956.
• Bank Holding Company Act Amendments of 1970.
• Bank Protection Act of 1968.
• Bank Service Company Act.
• Community Reinvestment Act of 1977.
• Crime Control Act of 1990.
• Depository Institution Management Interlocks Act.
• Emergency Homeowners’ Relief Act.
• Federal Credit Union Act.
• Federal Deposit Insurance Act.
• Federal Home Loan Bank Act.
• Federal Housing Enterprises Financial Safety and Soundness Act of 1992.
• Federal Reserve Act.
• Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
• Flood Disaster Protection Act of 1973.
• Home Owners’ Loan Act.
• Housing Act of 1948.
• Housing and Community Development Act of 1992.
• Housing and Urban-Rural Recovery Act of 1983.
• National Housing Act.
• Neighborhood Reinvestment Corporation Act.
• Public Law 93–100.
• Securities Exchange Act of 1934.
• United States Code.
• Title 31, United States Code.

At the heart of the American economic meltdown was the mortgage backed securities. The Officer of Thrift Supervision (OTS) that supervises home loans. It comes under the purview of the US treasury. It is a federal bank regulator and is paid by its members. The OTS is the primary regulator of federal savings associations (federal savings bank and loans), savings and loan holding companies (SLHCs) and some state-chartered institutions. While it initially was aggressive in its watchdog role, over time declining revenues led it to become lax. Some of its later members were not banks. Poor supervision led to a backdating of balance sheet of IndyMac, one of its non-bank members. This has led to abolishment of this organization by handing its control over to the Comptroller of the currency. This is to happen within 18 months of enactment of the Act.

The Office of the Comptroller is in effect to be the new regulator for the above said institutions. It is charged with assuring the safety and soundness of, and compliance with laws and regulations, fair access to financial services, and fair treatment of customers by, the institutions and other persons subject to its jurisdiction.

The chief officer of the Office of the Comptroller of the Currency shall be known as the Comptroller of the Currency. He/she will work under the direction of the Secretary of the Treasury.

The Secretary of the Treasury can not prevent the issuance of any rule or intervene in any matter or proceeding before the Comptroller of the Currency, unless provided by law. The Comptroller of the Currency has the same authority as vested in the Director of the Office of Thrift Supervision on the transfer date. Under the chief will be the Deputy Comptroller, who shall be responsible for the supervision and examination of Federal savings associations.

The office of the comptroller can raise funds by charging an assessment fee. The assessment fee will be determined by the nature and scope of the activities of the entity, the amount and type

of assets that the entity holds, the financial and managerial condition of the entity, and any other factor. The money collected stays with the Office to funds its activities and will not be treated as Government monies. The merging includes transfer of employees and deposition by the chief of OTS.

A permanent  increase in the standard maximum deposit insurance (deposit insurance to protect deposits of credit union members )amount to $250,000, from 100,000 applies to depositors in any institution for which the Corporation was appointed as receiver or conservator on or after January 1, 2008, and before October 3, 2008.

Office of Minority and Women Inclusion

In not later than 6 months after the date of enactment of this Act, each agency (the Departmental Offices of the Department of Treasury,  the Corporation, the Federal Housing Finance Agency, each of the Federal reserve banks, the Board,  the National Credit Union Administration, the Office of the Comptroller of the Currency, the Commission and  the Bureau.

These agencies are required to establish an Office of Minority and Women Inclusion that shall be responsible for all matters of the agency relating to diversity in management, employment, and business activities.

These agencies are expected to seek affirmative steps to seek diversity in the workforce of the agency at all levels of the agency in a manner consistent with applicable law. This will include:

• recruiting at historically black colleges and universities, Hispanic-serving institutions, women’s colleges, and colleges that typically serve majority minority populations;
• sponsoring and recruiting at job fairs in urban communities
• placing employment advertisements in newspapers and magazines oriented toward minorities and women;
• partnering with organizations that are focused on developing opportunities for minorities and women to place talented young minorities and women in industry internships, summer employment, and full-time positions;
• where feasible, partnering with inner-city high schools, girls’ high schools, and high schools with majority minority populations to establish or enhance financial literacy programs and provide mentoring
• any other mass media communications that the Office determines necessary.