A bit of an update

Reader comment on: Two on JPMorgan Chase
in response to reader comment: Of course he thought it was a "favor" for the government regulators - watchdogs on the financial corp.

Submitted by Lyle (United States), Sep 27, 2013 16:33

The OTS was killed off by Dodd Frank and merged with the OCC. The OCC Office of the comptroller of the Currency is the Primary regulator for all national banks (banks with a federal charter). The FDIC is the backup regulator for all insured banks as they are an insurance fund. Any state bank has as a primary regulator the state bank regulator in the state it has its charter from. (State banks predate National ones, National banks were created in 1863 during the Civil War). The Federal Reserve regulates the Bank Holding companies. A Bank Holding company owns the stock of the actual bank, typically the holding company is the one the publicly traded stock is issued by, the actual bank's stock is held by the holding company. (Read Sheila Bair's book to see how the regulators fought tooth and nail during the bailout). She posits that Timmy wanted to keep Citigroup alive at all costs to avoid staining the reputation of his mentor Robert Rubin. (or at least that is implied)

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