The following are some of the larger institutions that were regulated by the OTS: Prior to Indy Mac's failure on July 11, 2008, the bank had come to rely heavily on higher cost, less stable, brokered deposits, as well as secured borrowings, to fund its operations.
The bank had focused on stated income and other aggressively underwritten loans in areas with rapidly escalating home prices, particularly in California and Florida. Reich described "interference with the regulatory process by reporting and disseminating speculation about the condition of financial institutions, thereby undermining public confidence in those institutions and causing serious harm" as a contributor to the failure of Indy Mac as well as Fannie Mae, Freddie Mac and Lehman Brothers. Reich removed his agency's western director, Darrel W.
Reform proposals from Henry Paulson, President Barack Obama, and the U. Congress proposed to merge the OTS with the Office of the Comptroller of the Currency.
Section 312 of the Dodd-Frank Wall Street Reform and Consumer Protection Act mandated merger of OTS with the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board of Governors, and the Consumer Financial Protection Bureau (CFPB) as of July 21, 2011. Other regulatory agencies like the OTS include the Office of the Comptroller of the Currency, the FDIC, the Federal Reserve System, and the National Credit Union Administration. Bush Administration, Federal District Judge Royce C.
(FDIC), the Federal Reserve Board, and the Consumer Financial Protection Bureau (CFPB) as of July 21, 2011. The end of the OTS prompted at least one thrift, Thrivent Financial for Lutherans, to convert to a credit union rather than meet the "strict" insurance regulations set forth in the Dodd-Frank Act.
The report concluded that, under the law, OTS should have taken Prompt Corrective Action against Indy Mac in May, 2008.
Commenting on the report, Inspector General Eric Thorson dismissed Reich's claim that Senator Schumer's letters caused the failure.
These new findings are raising questions about the OTS's relationship with the companies it regulates and about its role in the collapse of several of the nation's largest banks this year, including Washington Mutual and Countrywide Financial, the _""Washington Post"": said of the news.
""The role of the Office of Thrift Supervision, as the name says, is to supervise these banks, not conspire with them,"" said Sen. Grassley (R-Iowa) in a ""statement"": Page ID_1502=18591 issued following a briefing from the Treasury's inspector general on his findings.
OTS's consolidated supervision program for GE, AIG Inc., and Ameriprise was 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.