OCC, OTS merger going "rockier" than expected
The absorption of the Office of Thrift Supervision by the Office of the Comptroller of the Currency may not be going as smoothly as some lawmakers thought when a provision requiring the merger was included in Dodd-Frank Act. As part of the financial and regulatory overhaul of the U.S. economy that was the Dodd-Frank Act, the OCC, which is responsible for bank supervision, must acquire the operations and some employees from the OTS, which supervises thrifts by July 21, 2011. Over the weekend, regulators closed the 143th failed bank of the year, passing last year's total of 140. Ann Jaedicke, deputy comptroller for compliance policy at the OCC, said 700 thrifts and between 600 and 700 employees will be making the move. "July is not very far away," Jaedicke said while speaking at the Wolters Kluwer CRA & Fair Lending Colloquium in Las Vegas Monday. It is still unclear which employees will make the transfer and what new training they will likely receive. A source familiar with the matter told HousingWire that those certified in safety and soundness may have to get certified as well will fair lending policies and vice-versa. "It's pretty rocky," the source said. Jaedicke said the OCC is working with the OTS to move the people, personnel, property, payrolls and other systems over in time. The merger has the same deadline as the formation of the Consumer Financial Protection Bureau. "We're very hopeful we'll be up and ready to go in July," Jaedicke said. Write to Jon Prior.