Office of Thrift Supervision

Type: Government Agency
On the web: http://www.ots.treas.gov
Employees: 1,024
Employee growth: 5.8%

Despite a name that sounds like a grim location in a Charles Dickens novel, the Office of Thrift Supervision (OTS) is a modern creation. Established as a bureau of the US Department of the Treasury in 1989, the OTS is the primary regulator of all federally chartered and many state-chartered savings associations: more than 800 thrift institutions and more than 450 thrift holding companies in all. The bureau is funded by assessments and other fees levied on the institutions that it supervises. The successor to the Federal Home Loan Bank Board, the OTS was formed in the wake of the savings-and-loan debacle of the 1980s as part of the US government's effort to tighten standards in the industry.

Key numbers for fiscal year ending September, 2007:
Sales: $242.8M
One year growth: 2.7%

Officers:
Director: John M. Reich
Senior Deputy Director and COO: Scott M. Polakoff
CFO and CIO: Wayne G. Leiss

The Office of Thrift Supervision (OTS) was established as a bureau of the Treasury Department in August 1989 as part of a major reorganization of the thrift regulatory structure mandated by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (12 U.S.C.A. § 1462a). The reorganization resulted from the savings and loan crisis of the 1980s, when a newly deregulated thrift industry invested in high-risk real estate ventures, many of which collapsed. This led to enormous financial losses and the call for more federal regulation and oversight.

The OTS is authorized to charter federal thrift institutions and to serve as the primary regulator of the 1,700 federal- and state-chartered thrifts that belong to the Savings Association Insurance Fund. Its purpose is to maintain the safety, soundness, and viability of the thrift industry by adopting regulations that seek to prevent unreasonable lending risks, examining and supervising thrift institutions, and enforcing compliance with federal laws and regulations. In addition to overseeing thrift institutions, the OTS also oversees companies that own thrifts and controls the acquisition of thrifts by such holding companies.

The OTS is organized into five main divisions. The Washington Operations office develops national policy guidelines to clarify and implement statutes and regulations and establishes programs to implement new policies and laws. This division monitors the condition of the thrift industry and attempts to identify emerging supervisory problem areas.

The Regional Operations division examines and supervises thrift institutions through five regional offices located in Jersey City, Atlanta, Chicago, Dallas, and San Francisco. These offices also promote housing and other financial services in areas with the greatest need. The regional offices oversee the training and development of federal thrift regulators through accredited programs.

The Chief Counsel division provides a full range of legal services to the OTS, including drafting regulations, representing the agency in court, and taking enforcement actions against savings institutions that violate laws or regulations.

The staff of the Congressional Affairs division interacts with members of Congress, congressional staff, and committee members to accomplish the legislative objectives of the OTS. This division provides information to Congress about the office's supervisory, regulatory, and enforcement activities.

The Public Affairs division disseminates information, including policies, regulations, and key developments within the office. It also maintains an archive of business records and documented actions of the OTS and its predecessor, the Federal Home Loan Bank Board.

The OTS uses no tax money to fund its regulation. Its expenses are met through fees and assessments on the thrift institutions it regulates. The OTS is headed by a director appointed by the president and confirmed by the Senate to serve a five-year term.

See: savings and loan association.

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Office of Thrift Supervision
Agency overview
Formed	August 9, 1989
Headquarters	Washington, D.C.
Employees	1024 (2007)
Agency executive	John E. Bowman, Acting Director
Parent agency	Department of the Treasury
Website
www.ots.gov

The Office of Thrift Supervision (OTS), an agency of the United States Department of the Treasury, is the primary regulator of federal savings associations (sometimes referred to as federal thrifts). Federal savings associations include both federal savings banks and federal savings and loans. The OTS is also responsible for supervising savings and loan holding companies (SLHCs) and some state-chartered institutions.

Contents 1 History and organization 2 Responsibilities 3 Institutions regulated by the OTS 4 References 5 See also 6 External links

History and organization

The OTS was established by Congress as a bureau of the Department of the Treasury on August 9, 1989 as part of the Financial Institutions Reform, Recovery and Enforcement Act of 1989.

OTS does not receive appropriations from the U.S. Congress to fund its operations; instead, the entire budget of the agency is paid by assessments on the institutions it regulates. The OTS has regional offices in Atlanta, Dallas, Jersey City, San Francisco, and Chicago. Other regulatory agencies like the OTS include the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Federal Reserve System, and the National Credit Union Administration.

On June 17, 2009 President Barack Obama announced that he would ask the United States Congress to merge OTS into the Office of the Comptroller of the Currency, which regulates nationally chartered banks.^[1]

Responsibilities

OTS supervises holding companies as well as thrift institutions. This results in OTS providing consolidated supervision for such well-known firms as General Electric (GE), AIG, Inc., Ameriprise Financial, American Express, Morgan Stanley, and Merrill Lynch. OTS's consolidated supervision program for GE, AIG Inc., and Ameriprise has been recognized as "equivalent" by the European Union – allowing these firms to operate their financial businesses in the EU without forming an EU holding company and submitting to supervision in the EU.

Institutions regulated by the OTS

The following are some of the larger institutions currently or formerly regulated by the OTS.

• American Express Bank, FSB – Salt Lake City, UT
• American International Group – New York City, NY (NOTE 4)
• Astoria Federal Savings and Loan Association – Long Island City, NY
• BankUnited, FSB – Coral Gables, FL now (BankUnited)
• Capital One, F.S.B. – McLean, VA (NOTE 1)
• Chevy Chase Bank, Federal Savings Bank – McLean, VA
• Citicorp Trust Bank, FSB – Wilmington, DE
• Citizens Bank of Pennsylvania – Philadelphia, PA
• Countrywide Bank, FSB - Alexandria, VA (NOTE 2 - now a part of Bank of America)
• Downey Savings, F.A. – Newport Beach, CA (now a part of US Bank)
• E-Trade Bank – Arlington, VA

• Flagstar Bank, FSB – Troy, MI
• Guaranty Bank – Austin, TX
• H&R Block Bank - Kansas City, MO
• Hudson City Savings Bank, FSB – Paramus, NJ
• IndyMac Bank, FSB – Pasadena, CA (NOTE 3)
• ING Bank, FSB – Wilmington, DE
• New York Community Bank – Flushing, NY
• Ohio Savings Bank / Amtrust – Cleveland, OH
• PFF Bank & Trust - Rancho Cucamonga, CA (NOTE 2 - now part of US Bank)
• Sovereign Bank – Wyomissing, PA
• USAA Federal Savings Bank – San Antonio, TX
• Washington Mutual FSB - Seattle, WA (NOTE 2 - now a part of JPMorgan Chase)
• Wilmington Savings Fund Society, FSB - Wilmington, DE

Further Notes

• (NOTE 1): Now a national bank supervised by the Office of the Comptroller of the Currency
• (NOTE 2): Has failed and subsequently been acquired by a national bank
• (NOTE 3): Has failed and is now under receivership with the Federal Deposit Insurance Corporation
• (NOTE 4): Has effectively been nationalized and is currently run by the United States Department of Treasury

References

1. ^ Labaton S. (2009). Obama Sought a Wide Range of Views on Finance Rules. New York Times.

• "Office of Thrift Supervision". http://www.ots.treas.gov/. Retrieved October 7 2005. 
• Information about OTS from hoovers.com

See also

• Bank regulation in the United States
• 2009 United States bank failures

External links

• This American Life Episode 382: The Watchmen 5th June 2009, covers OTS

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