OCC has apparently chosen Jonathan Gould as its new head.
Jonathan Gould, a former senior deputy comptroller and chief counsel at the Office of the Comptroller of the Currency (OCC), has been confirmed by the U.S. Senate to serve a five-year term as the Comptroller of the Currency. Gould won a narrow 50-45 vote, becoming the first permanent chief since 2020.
Gould's policies and priorities reflect a focus on tailored oversight, financial risk management, support for innovation, and a reduced emphasis on reputational risk. He has pledged to "shine a spotlight" on de-banking activities, a concern shared by banking trade groups such as the American Bankers Association and the Consumer Bankers Association.
Gould advocates for aligning supervisory expectations with each bank’s size and business model, moving away from using reputational risk as a supervisory factor. He supports banks engaging in prudent risk-taking to fulfill their role in supporting the U.S. economy.
In terms of innovation, Gould is expected to continue the OCC’s increasingly crypto-friendly approach. He aims to identify safe and sound ways for banks to engage in lawful emerging activities, including crypto-related business. This pro-innovation stance could increase adoption and integration of digital assets within federally chartered banks.
However, Gould's leadership also signals a return to a more traditional OCC focus on chartering and supervising banks primarily with respect to safety and soundness, with less emphasis on broader social or reputational concerns. This could lead to increased regulatory certainty and stability, positively affecting bank chartering and product innovation.
Gould has expressed concern about banks discriminating against customers on the basis of politics or religion, which may influence bank compliance and customer relations. He has also pledged to ensure the continued relevance of the national banking system and its ability to support the national economy.
Sen. Elizabeth Warren, D-MA, has expressed concern that Gould may pursue a Wall Street deregulatory agenda. She has peppered Gould with more than 100 questions regarding bank regulation, supervision, enforcement, merger reviews, crypto assets, states' rights, regulatory independence, and conflicts of interest.
Despite these concerns, Sen. Mike Crapo, R-ID, is confident in Gould's ability to carry out the OCC's mission. All senators who voted to confirm Gould were Republicans. Gould's confirmation makes him the second financial regulator to get a permanent chief under the second Trump administration, following Paul Atkins at the Securities and Exchange Commission in April.
The confirmation of Gould as Comptroller of the Currency marks a pivot towards tailored, risk-focused supervision with a pro-innovation stance, including crypto, and reduced emphasis on reputational risk. This shift could ease regulatory burdens on banks and boost certain banking activities, while spotlighting controversial de-banking issues.
Business and politics may intersect as Jonathan Gould, the newly confirmed Comptroller of the Currency, has pledged to focus on de-banking activities, a concern shared by banking trade groups, and has received questions about bank regulation from Senator Elizabeth Warren. In terms of finance, Gould's policies emphasize tailored oversight, financial risk management, support for innovation, and a reduction in emphasis on reputational risk, which could positively affect bank chartering and product innovation, and potentially boost certain banking activities.
