Jennifer Sutton and Rodge Cohen, S&C’s Senior Chair, authored the article “New OCC Bank Policy May Be An Enforcement Warning” for Law360 discussing the Office of the Comptroller of the Currency’s (OCC) revision of its policies and procedures manual regarding bank enforcement actions. Issued on May 25, 2023, the latest version addresses the OCC’s consideration of supervisory and enforcement actions against banks that exhibit “persistent weaknesses.”
The new policy appears to implement the “too-big-to-manage problem” coined by Acting Comptroller Michael Hsu in January, wherein a bank, by virtue of its size and complexity, becomes “so big and complex that control failures, risk management breakdowns, and negative surprises occur too frequently.” Banks should be aware that consequences of becoming “too-big-to-manage” could involve the OCC’s most severe tools, including growth restrictions and mandated divestitures.
Read “New OCC Bank Policy May Be An Enforcement Warning.”