Comptroller of the Currency Addresses Financial Services Roundtable

Comptroller of the Currency Thomas J. Curry gave a speech before the Financial Services Roundtable in Washington, D.C. in which he discussed the continuous need for a strong regulatory framework supported by on-site examination. In particular, he argued that although stress testing is a valuable tool that can help distill vast amounts of data into more actionable analysis, it is not a substitute for supervisory boots on the ground. According to Curry, many of the problems that are proving most damaging to large banks involve operational risk. He believes that the system of supervision currently in place is "very good" and is being made to become better (e.g., while regulators operated for years under the premise that oversight functions rated as satisfactory were sufficient, large banks are now required to achieve a rating of "strong" in their audit and risk management functions).

He stated that although the financial industry is far healthier and better able to meet the needs of the American economy than it once was (even prior to 2008), it is crucial that regulatory frameworks continue to evolve and keep pace with the financial markets.

View speech in full here (links externally to OCC website).