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Board Report: 2014-AE-B-004 March 26, 2014

Transfer of Office of Thrift Supervision Functions Is Completed

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Offices of Inspector General
Department of the Treasury
Federal Deposit Insurance Corporation
Board of Governors of the Federal Reserve System
and Consumer Financial Protection Bureau

March 26, 2014

Janet L. Yellen, Chair
Board of Governors of the Federal Reserve System

Martin J. Gruenberg, Chairman
Federal Deposit Insurance Corporation

Thomas J. Curry, Comptroller of the Currency
Office of the Comptroller of the Currency

This report presents the results of our offices’ seventh and final joint review of the transfer, pursuant to Title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act or the Act), of the functions, employees, funds, and property of the former Office of Thrift Supervision (OTS) to the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC). In accordance with Title III of the Act, the transfer occurred in July 2011.

Our joint reviews are mandated by Section 327 of Title III. During our first review, we determined the Joint Implementation Plan (Plan) for the transfer prepared by FRB, FDIC, OCC, and OTS generally conformed to relevant Title III provisions1. Since then, in accordance with Section 327, this is the sixth joint review we completed to report every 6 months on the status of the Plan’s implementation. In our prior reports, we jointly reported that the Plan has been implemented for the most part, as the functions, people, and property of OTS were transferred to FRB, FDIC, and OCC in accordance with Title III and the Plan. We also reported that procedures and safeguards were in place at FDIC and OCC as outlined in the Plan to ensure that transferred employees are not unfairly disadvantaged, a key requirement in Title III. Further, we reported that for savings and loan holding companies and bank holding companies with consolidated assets of $50 billion or more, and nonbank financial companies that FRB is required to supervise pursuant to Section 113 of the Dodd-Frank Act, FRB is to collect assessments, fees, or other charges equal to the expenses FRB estimates are necessary or appropriate to carry out its supervisory and regulatory responsibilities. FRB’s final rule for the collection of assessments, fees, and other charges was published in the Federal Register on August 23, 2013. Accordingly, the rulemaking for FRB’s supervisory assessment pursuant to Section 318 of the Dodd-Frank Act is completed. Appendix 1 lists our prior reports on the transfer of OTS functions.

For this reporting period, we determined that both FDIC and OCC complied with the Act by providing the remaining protections afforded to the transferred OTS employees for the required 30-month period following the transfer. Accordingly, this is our final joint review of the transfer of the functions, employees, funds, and property of the former OTS to FRB, FDIC, and OCC.

  • 1. We noted that the plan did not address the prohibition in Title III against the involuntary separation or the involuntary reassignment of a transferred OTS employee outside the employee’s locality pay area for 30 months (except under certain circumstances). In response, the agencies amended the plan in April 2011.  Return to text