OCC Steps Up Regulatory Role with ‘Recovery Plans’
ByRachel Witkowski
WASHINGTON — With its proposal to force big banks to deliver “recovery plans,” the Office of the Comptroller of the Currency is filling a gap in the current regulatory regime — and making a power play at the same time. Until now, the OCC has largely sat on the sidelines as the Federal Deposit Insurance Corp. and Federal Reserve Board forced banks to submit “living wills” detailing how they could be taken apart in the event of a crisis. But observers said the OCC’s plan is broader and more focused on preventing a failure from occurring rather than just cleaning one up. “There are different sets of expectations” with the OCC’s recovery plan, said Karen Shaw Petrou, managing partner of Federal Financial Analytics. “The more a national bank is resilient, the less it needs to demonstrate how to be resolved so the rules are compatible,” Petrou said.