Comptroller's Office, FDIC Battle Over Bank Regulation: Penn Square ...
The nationÛªs bank regulators have been involved in a well-concealed, but sometimes tense, turf struggle in which the Federal Deposit Insurance Corp. has asserted the right to examine almost any bank in the United States, even if the bankÛªs supervisory' agency is the Office of the Comptroller of the Currency or the Federal Reserve Board.</br></br>So far. the spat has involved the comptroller and the FDIC, "although weÛªre aware of whatÛªs going on." according to an official of the Federal Reserve.</br></br>Several top officials of both agencies say that the differences between the FDIC and the comptroller can be exaggerated, and often are by the middle-level officials of both agencies. But the same officials also admit that the two agencies have yei. to work out an acceptable agreement that defines where and when the FDIC can tread, although they say they are close.</br></br>On the other hand, they concede they have been close before and that even if the comptrollerÛªs office and the FDIC agree, the Fed may not.</br></br>Furthermore, one official said, while the pact the agencies me talking about now may deflect future confrontations, it will not resolve the fundamental sticking point: The FDICÛªs claim it can examine any bank whose deposits it insures, even if those banks are supervised by the comptrollerÛªs office or the Fed.