in 2010, the occ received 854 complaints. it does represent a 16% reduction in complaints we receive in 2009 when we receive 1018 complaints. last year, the occ said sustained allegations in 9% of the cases we close. we found proper conduct in 29% of the cases investigated. and we found that 3% of the allegations were not true or unfounded. when we look at the types of complaints we have received, unwarranted actions represent 35% of the allegations and the complaints we received last year. this is followed by conduct reflecting miss credits. 27% of the allegations. unnecessary force comprised only 10% of the allegations. and the sustained rate for unnecessary force was only 2% of the cases. approximately 26% of the complainants were african- american. caucasians comprise another 32% of the complainants. 18% refused to stay there raise. latino represented 12%. native americans and pacific islanders 2%. the occ is located on the corner of van ness and market. we receive walken complaints regarding the police conduct from the p

do you believe, sir, that the occ should be held accountable for its actions? do you? >> i believe that it should, but i think primarily by -- >> you believe it should be, as a regulator, should be held accountable for its actions, don't you? >> i think it has accountability in many respects now. >> i didn't ask you that. >> yes. >> excuse me. >> i think everyone thinks that. >> if so, would you support an effort to make them more accountable to congress? would you support an effort to make the occ and otherring regulators more accountable to congress? >> we would support an effort to make the occ and others comparable with the cfpb because they are the two pillars of financial oversight, consumer protection and safety and soundness and we think they should be comparable because they are the two interests that need to be at the table in balance. >> but would you support, again, let me be clear. my question is this -- would you support efforts in the congress to make the occ and other financial regulateors more accountable to the congress? either yes or no? >> i do have

the biggest single task has been to integrate the functions of the office of supervision into the occ but we have devoted considerable effort to the transfer of supervisory responsibilities to the new consumer financial protection bureau and we participated in the early work of the financial stability oversight council which has the potential to serve against market disruption. regarding the t f integration i am pleased to report on monday 674 employes of the office of supervision reported for duty at the occ in offices from the country. we have worked hard to ensure a smooth transition and we have succeeded in moving to a single regulator for national -- we need every bit of the talent and experience to fulfil our combined supervisory mission and the men and women joining us have been fully integrated into policy and field units where their talents can best be utilized. we recognize the importance of communication to the industry so executives know what to expect from the combined agency and we helped 17 outreach meetings around the country and had 1,000 thrift executives join us for

that's not a new view for the occ. we have guidance in that area. we reaffirmed and strengthened it in 2009. arguably we didn't enforce it as much as we should have, but i think that's the view is again, back to this idea of reducing reliance on credit ratings. >> thank you. i see my time has expired. i thank the chair for the additional time. >> and now the vice chairman, mr. fitzpatrick for five minut minutes. >> thank you, mr. chairman. mr. ramsey i want to follow up on the chairman's life questions earlier. having to deal with the designation process at the sec for recognizing the national recognize statistical organizations. i think you testified that for years the commission had a policy of issuing and no action letter. can you expand on that, with the process was and what it currently is? >> sure. so i think beginning 1975, if i'm not mistaken, the commissi commission, when the first use of the term nrsro was and put in commissions rules, essentially the commission granted what we call no action relief which is essentially a letter issued by

and there will be no layoffs at tghhe occ. there will be three senior investigative positions, a 16th line investigator position is supposed to be funded after september. i am looking at some alternatives. >> maybe we can get the board of supervisors to consider another academy class for you and a couple of more investigators. obviously, our opinion is that a stronger occ makes a strong police department. whatever you need from us, we will be there for you. >> thank you very much. >> are there any questions for director vix? please call line item 2 c? >> i want to take this up to 82 think the chief flaw in the negotiations and the reference to the budget crisis. there is a lot going on. many members of our city and family and i want to commend them. i would like to think commander lee for the reform. i think that we should clear up some discrepancies. i went shopping. the day and there was a petition and i hear people say that the need to take police officers money away. while i agree that there is need for reform, i think tha

they would have to be a supervised entity by the occ to take action. i would comment that i agree with you that you cannot ledge laylate fortitude and it's something you have to bring to the table. i also believe it's appropriate for all the banking agencies to look as the vice chairman mentioned with the material loss reviews how we could have done better and to learn from the lessons of this recent crisis. >> mr. woodall, i know you've gotten by here today, but i think we basically believe that you're well qualified for this position. and i do have a well-behaved and nice-looking family back there. [laughter] >> but this position is unique here as you pointed out and we know. the position you've been nominated to serve on. you'll be the first person to hold the insurance seat on the financial stability oversight council. and how you carry out your duties will set important precedent for the role of this position that we'll have on the future on the council. what contributions do you see -- and i know you don't see every crisis 'cause they haven't eme

the occ and the authors of the preemption amendment of dodd-frank have taken one position. the treasury department disagreed with that view. mr. curry, what are your views about how the dodd-frank preemption preventions have been interpreted by the occ and the treasury department? >> i understand that the actual language of dodd-frank is a matter of some controversy between interested parties. generally speaking, i think the principle is clear from the constitution that the federal law supersedes conflicting state law and that's an important concept to remember. >> that the position the comptroller's office takes? >> i believe so. it's a federal agency. >> are you aware of the position that the treasury department department's taking. >> i understand that the treasury department did violate public comment on the occ's opposition. i think having a comment on the record is probably the most appropriate way to express those views. ultimately, i think it's incumbent upon the occ to maintain its independence as a bank regulatory agency and to remain free from any undue influence

within the occ, we reach out to experts within the different apartment in the occ. >> i would guess the fdic and have others reached out when you want a party to resume? do you reach out to others to find the expertise you may not have available? >> sure. i think and especially ms. williams points out in her testimony we need to line these up as much as possible and having a the interagency consultation. islamic i believe you ms. williams but i'd like to clarify it. is it fair to say that everybody should have a general-interest not to give up any rights or abilities but in coordinated oversight and regulation of the financial-services industry. is there any interest. if anybody ever heard of somebody interested in having won this coordinated oversight and regulation. every financial service industry has different ones they have not talked to each of the. has anyone on the panel heard of anyone advocates that position? i didn't think so, because we all want oversight. is their anyone here who disagrees that the comments on july 21st, the cftc, whether you like it or not this efp will ta

you using the occ as an example?t is not a good example. >> it will be the continuing primary regulator of the national bank in this country, which control a huge share of consumer transactions. the consumer protection bureau and its director needs to be on par so that you have the two of these working together with comparable structures and comparable power. we agree in a balanced way forward. everyone in the agency, in particular, the consumer bureau, is aware that at the end of the day, for them to be sustainable, they have to stay in line with with the congress, with the administration, with the political process is. the ftc, in the 1970's, a step further than the administration and the congress thought it should. they came in and cut back its authority. >> i think you all have needlessly created an issue back create -- created an issue that created a divide. the only way it could pass was with all democrats. the bill ended up being lopsided. we ended up with a tremendous lack of clarity and we will have it for s

the occ and f. have also ensured that consumers and small businesses continue to have access to credit from maintaining consumer access to a stable mortgage market to protecting small businesses access to capital, to help create jobs to promoting small community banks ability to provide credit to consumers in areas where big banks simply won't go. these agencies have their work cut out for them. i will look to our nominees to place a priority on all of these issues at their agencies. lastly, the financial stability oversight council is a key part of the wall street reform act. it was created to identify it systemic risks posed by a large, complex financial institution before their threaten stability of our economy. i am pleased to consider the nomination of mr. woodall to be the voting insurance expert at fsoc. they showed us how interconnected the insurance industry is with the help of our economy and i'm sure that mr. woodall's contribution as an fsoc member will be invaluable. the stability of ou

we had agreed to create a consolidated banking regulator with the authority of the federal reserve, occ, and fdic joined in a single entity. it even had a name, financial institution regulatory authoridate. there was strong agreement that current regulators had failed and radical reform was needed. also agreed to elevate consumer protection to equal status with regulation. i proposed at that time given the consumer protection division equal access to congress and the variety of dedicated funds. we agreed to permit non banks to be supervised subject to enforcement. by any measure the republicans were willing to meet our democratic colleagues and the administration more than half way on a number of issues including consumer protection. any hope for a bipartisan agreement evaporated when the word came down from the administration that it was going to be their way or the highway. a similar dynamic was at work in the agricultural committee n senators javelins and lincoln had agreed on a bipartisan title until the former senator wirth told there was told there would be no compromise. secretar

now the police or occ were commissioners are required to respond to questions from the public. the commissioners and police should refrain from entering any debates or speakers during public comments. >> thank you very much, lieutenant. >> good evening, commissioners who shall remain nameless. >> i live in south of market. i am here to address two if near and dear to my heart. -- two issues near and dear to my heart. i have lived in oakland, which is where i am from. this really needs to be able to have a police officer that you can contact to tell us about things which are running the miss or amok in your area. i really appreciate the efforts because they are not here on your panel and i want to do shutouts -- out out some two commander lazar. lt. sullivan was helpful in keeping things down to a dull roar. i miss them because that was community involved policing. they were people that i could call and say, hey, x, y, z is going on. the other thing i want to bring to your attention is my concern about the gay parade impact on south of market. i live in the folsom -- apartments.

we have worked to ensure cooperation between the occ and the new consumer bureau. in addition to participating in numerous briefings, we have assisted in developing the agency's procurement and personnel management prophesies to ensure the agency has the information it needs about the banks it will be supervising. we executed a memorandum of understanding that allowed us to share reports of examination, information on enforcement matters and other confidential information. we have agreed to provide transitional support, including consumer complaints. we will operate our consumer assistance groups to handle complaints. the bureau builds their own capacity in this area. as we discussed in our last appearance, we participated in the interagency effort to create an oversight council. the council will be an important venue for averting and addressing future market disruptions. finally it calls for a number of rule making. clearly, we have a great deal of work ahead in implementing many provisions but i'm confident we will get it done in a way that strengthens the financ

we have worked to ensure cooperation between the occ and the new consumer bureau. in addition to participating in numerous briefings, we have assisted in developing the agency's procurement and personnel management prophesies to ensure the agency has the information it needs about the banks it will be supervising. we executed a memorandum of understanding that allowed us to share reports of examination, information on enforcement matters and other confidential information. we have agreed to provide transitional support, including consumer complaints. we will operate our consumer assistance groups to handle complaints. the bureau builds their own capacity in this area. as we discussed in our last appearance, we participated in the interagency effort to create an oversight council. the council will be an important venue for averting and addressing future market disruptions. finally it calls for a number of rule making. clearly, we have a great deal of work ahead in implementing many provisions but i'm confident we will get it done in a way that strengthens the financ

president mazzucco: it sounds like you've already discussed this matter with the occ. >> not this particular matter. i have discussed the matter with sergeant gray. in the very short time -- i just want to say, in the very short time we were collecting signatures, we need to be allowed -- president mazzucco: we need to have someone from the police department talk to you. i see someone is going to talk to you now. thank you, sir. any further comment regarding these matters? call the next item. >> item two, captain daniel mahoney, commanding ingleside station officer -- commanding officer of ingleside station. >> if i can jump in, i have been trading e-mail with a couple of folks. most recently, there was a supreme court petition gathering. i am not sure if it was this gentleman. we're going to put out a department bulletin, just to make sure the officers are reminded of the most recent case. that are allowed. >> i do not ordinarily engaging in discourse with people, but that sounds like an important issue. line item #doc. -- number two. >> commissioners, the leading. if you can give me just o

we have worked to ensure cooperation between the occ and the new consumer bureau. in addition to participating in numerous briefings, we have assisted in developing the agency's procurement and personnel management prophesies to ensure the agency has the information it needs about the banks it will be supervising. we executed a memorandum of understanding that allowed us to share reports of examination, information on enforcement matters and other confidential information. we have agreed to provide transitional support, including consumer complaints. we will operate our consumer assistance groups to handle complaints. the bureau builds their own capacity in this area. as we discussed in our last appearance, we participated in the interagency effort to create an oversight council. the council will be an important venue for averting and addressing future market disruptions. finally it calls for a number of rule making. clearly, we have a great deal of work ahead in implementing many provisions but i'm confident we will get it done in a way that strengthens the financ

why did occ object to these mild considerations? >> they were concerned it would affect short-term profitability of the yanks. >> appears under the argument to protect short-term profitability, long-term structural problems were able to a merge, and personal finances were undermined, and we ended up with mortgage practices turning to securities that blew up our entire system. why was short-term profitability put over a long term soundness of our system? >> i think a lot of it has to do with competitions of charters, that banks can shop for the regulator, and that has serious consequences. they spoke about it earlier about how the ability to shop for charters has created a race to the bottom in bank regulation, and those cc gets its budget from not the appropriations process but rather from fees it charges to the thanks it charters. if it wants a larger budget, it has to occur more thanks. it needs more regulation -- it means less regulation. >> you mentioned the military lending act and the fact there are loopholes and a lot of piec

we have capped funding, other banking regulators, for example, the occ, determines funding levels and assesses financial institutions for them. the fdic follows those similar structure. the fed, of course; gets its money in yet o different way. as i said in my statement, there are limits on our funding if we want funding above the cap provided in the statute. we must come back to congress and ask congress for an additional appropriation. that's what's provided in dodd-frank, and we would be permitted to do that, but it means we have to come back into the appropriations process, and as i understand it, the other bank regulators do not go into the appropriations process in order to get their funding. >> would it be fair to say that the cbpb is different in the sense that with respect to the director position, it is subject to removal only for cause and it therefore exempted from presidential control? >> i -- i would have to go back and look at the statute again, congressman. i think -- >> my concern is this. it appears as though there are some unintended power or powers that are vested

and i agreed to create a consolidated banking regulator with the authorities of the federal reserve, occ, ots, and fdic would be joined in a single entity. it had the name of the financial institutions regulatory authority. there was strong agreement that the current regulators had failed and radical reform was needed. also agreed to elevate consumer protection, to equal status to provincial regulation. i've proposed, given the company -- given the consumer protection division. we agreed to permit non banks to be supervised and subject to enforcement. we met the administration more than halfway on a number of issues. any hope for a bipartisan agreement evaporated when the word came down from the administration that it was going to be their way or the highway. a similar dynamic was worked -- was at work in the agricultural committee where senators have agreed on a bipartisan derivatives title, until the former senator from arkansas was told there was not going to be any compromise. secretary geithner also wrote senior republican negotiators on the senate banking committee were not a deal

curry, we have sent colleagues to the occ and other agencies. the mortgage modifications, this continues to be a reality, which is not acceptable. it is not taxable under the law. it should not be acceptable for the regulatory agencies. we have been told by the regulatory agencies and that practice has ended, that there are reports that it has not, question is, the question before, all of you that have jurisdiction in the field, will you disclose the results of the foreclosure reviews on a bank i think bases, including the letters of engagement for the individual consultants performing those reviews and the application from the mortgage servicers? it can, in fact, be released in the public interest. there has to be some medium by which you can assure those of us who are both policymakers as well as the public that this has ended. >> senator, i think the robo signing affects both individual families and the mortgage finance industry. i think it is critically important that we work to restore credibility to a system. i think that the framework tha

to address them, the occ issued a cease and desist orders. the sample foreclosures reviewed in the examination exposed serious flaws in the foreclosure processes. as a sample, it could not, of course, quantify the individual borrowers that may have suffered financial harm due to these defects. that is why the orders issued by the agency required a comprehensive and independent review of foreclosure actions during a two year time. the independent review will seek to identify borrowers who have a pending or completed for closure in 2009 or 2010 through two distinct means. one, notice and out reached a those are words of their right to file a complaint and have that complaint reviewed. two, a targeted review of the loans of borrowers who are in identifiable high-risk segments who will provide an additional opportunity to detect borrowers who suffered financial harm. the orders require that the servicers submit detailed action plans to revamp their mortgage servicing and operation. for example, an action plan is required to implement comprehensiv

occ launched a citizen complaint and then, the district attorney's office. >> two men accused in the brutal beating of giants fan brian stow may have attacked other giants fans during the dodgers home opener according to the lapd. louie sanchez and marvin norwood appeared in court this morning. arraignment was postponed after their attorneys asked for more time. the case against the men may be growing. >> we believe these individuals may have assaulted other people at the stadium. so we're hoping anyone with videotape or anyone who has information about that, especially anyone in giants attire would please contact us. >> and sanchez and norwood remain in jail tonight on $500,000 bail each. stow continues to recover at san francisco general hospital f convicted after tacking him, he faces a maximum nine years in prison. norwood facing up to eight years. >> public projects in santa clara county could face delays if a cement plant cannot meet a new state order. the state office is giving lihi southwest cement 30 days for expansion of a limestone mine in cupertino. if the company does no

telecomed in, but from 1999 to 2008, every single request by a large federally chartered bank to the occositive expend powers said yes to. not one single time did the office of the comptroller, reg later of all big banks did they say no. >> what year? >> 1999 to 200. you brought up the issue of success regulation, you talked about this. excessive regulation versus non-excessive regulation. what about no regulation? should we be a country of no regulation? that the gang of six which proposed -- should we cut taxes and tell them that they should have no regulatory environment? what's the trade-off when you've got a dude with a wife and three kids in dubuque, iowa struggling every day to put gas in their car? >> so how do you define regulation? you need rules -- >> i agree, there are rules that are needed's to be fair to everybody. right? the fact of the matter is, no regulation? no. less regulation is what we need. >> or at least -- >> or have a simpler regulation. >> okay. let's cut through the paperwork. >> right. >> let's have simpler regulations. less, but you talk about the banking in

from i believe the fed and/or occ. these are like precursors to the big aig trade. so there were ways to figure it out but was but who, with significant? so because of how much country and you are or just going to go along with the joke, so i think besides the market there were authorities that new things are going on but they didn't choose to act. >> yes? >> i just want to ask a question, maybe make a statement about the money market fund area, and your two views of the world. there was some research done by two stern professors, and it's a broad work but they have some startling figures on reserve prime fund. and if you look at sort of when they loaded up on risk, they went from about 17 or 18 billion in assets to about 60 billion. and if you look at what the spreads were, eight or nine basis point and they were offering 40 basis points off. and you look at the assets they should to do, really from august '07 until after the crisis started to august '08, just in a year period, they just load up on asset-backed commercial paper and some risky financial paper. so it

and, occ, you've got somebody on 143? >> back on 2 and 2, yes. we do on 143. >> so they're all participate anything this. >> yeah. it takes all of 'em to do this portion here, george. and otc gave 'em the go. our number four, renee, is going to be running the panel which gives the pressure through the hose into the crew module. and like they were saying, the commander will get a series of alarms of overpressure going off in the cabin which he will just nullify the caution and warning alarms, and we'll pressurize on up to 15 pounds. that's what chris is getting ready to do up on the hatch now, is they will hook that pressurization hose up, and renee with ecl engineering and direction over the net -- >> otc? >> yes, ma'am. >> you've got somebody over on 143, right? >> that's affirmed. >> okay. >> renee will be talking to ecl engineering, and she will give him the direction of what valves he needs to open and what pressure they're expecting to see. at that point we'll pressurize the vehicle, and we'll get it all ready for the crew. and at that time

the fed had consumer, occ -- all of these different agencies. consumer protection was often a secondary thought, a third thought, or not even thought about at all. that is why regulators did not in any way most to curb the abuses in the sub-prime lending, which they should of. the idea behind the cfpb was to create an agency whose sole purpose was consumer protection. this agency will interact with all of the other agencies, but will be focused on helping consumers. this is important. one of the bills that i authored, the credit card holders bill of rights -- the pugh foundation can now with a study that said this bill alone saved consumers $10 billion last year. that is $10 billion that was kept in guy hands of consumers said they could then put back into the top -- in the hands of consumers that they could then put back into the economy. so, the cfpb would play the important role of protecting american consumers, and best dickensian this crisis, the overall economy. if one of -- and as we can see, in this crisis. it is the first financial cris

i mean, even if we make it, if we had a clean debt ceiling vote, which obviously is not going to occ now, if you had a clean debt ceiling vote, we'd be right back at the table trying to figure out a way to keep from having a downgrade. so for what it's worth, i'm choong today to come to the floor and to be slightly optimistic because both sides of the aisle are beginning to look at ways of reducing tt issue. the rating agencies and actually, you know, we don't put a lot of faith in them, i know, but smart people that actually buy treasuries have said the order of magnitude that we need to deal with as it relates to deficit spending over the next short period of time is a minimum of $4 tllion. and that $4 trillion has to be real, and that $4 trillion needs to be accompanied by entitlement reforms. now, madam president, what i would say is that right now i dot think there's any propol that's being discussed that is strong enough. and i don't say that to knock any of the authors. there's nothing out there that i'm aware of that's bng discussed by the media or being discussed in either c

president's power of removal and that the secretary of the treasury house oversight authority over the occ as well as the power to appoint a deputy, so this is a very different situation. some cite other complaints, but those are wrong. hear, every agency has a budget cuts, so that is no different. the fact that there is an audit, every agency is subject to an audit. no different. the fact of there is reviewed by the financial stability oversight council, if the bureau were a private entity, the statement could well be the subject of enforcement actions or deceptive practice. first, it applies only to rules. second, it seems to be designed and never to be triggered. seven of of nine votes have to happen, and finally, also false is the contention that this would impose radical constraints on consumer protection. the commission model is the norm for the federal agency, and i do not think anyone would say the federal trade commission is not a vigorous regulator. they were proposed and approved by the house of representatives for this very agency. i do not think anyone would say that the presi

have shown in this process and the cooperation that we have enjoyed, as with many others here in the occ has a large body of work underway, 85 projects that we're engaged in as a result of the dodd-frank act, and that doesn't include things like the mortgage foreclosure mess that we're dealing with on its own track. but i can report that as of this morning the staff of the office of thrift supervision has reported, so there is from this week for a single agency responsible for supervision of national banks and federal threats. also we are ready to hand over supervise responsibility for large banks this week and have arrangements in place for a smooth transition there. but actually and comments of others, i do think that the council is one of the key defenses against future financial crises that dodd-frank has put in place and the council deliberations i think will be helpful in breaking down regulatory silos that existed that kept us kind of a bit too focused on her own work and not looking across the system and will help us tear into dark corners of the financial system, where abusive a

nonregulated banks and engage in banking activities in a manner consistent with the way that we, the occ and the fdic, examine banks. not all elements of the dodd-frank act strengthen the role of the fed. like the fed is granted greater backup soup vise ri authority or the regulators of subsidiaries under the act, others have backup authorities where the fed traditionally stood alone. in line with responsibilities under title ii for resolving important financial firms, the fdiy has new authorities that are not generally in sound condition in order to protect deposit insurance fund and prepare for resolution. the fdic has joint responsibility for reviewing the so-called living wills or rev luxe plans under the act in determines jointly with the board if a sifi's plan is not credible or result in a liquidity. the derivatives gives the fcc and tftc some authority on bank activities that have been the soul means of derivatives. there's recordkeeping and roforting standards for the intaps business of bank and non-banks, swap dealers and determines which swaps entered to by banks and non-banks