Streamlined Oversight of Depository Institutions by the OCC Could Be Overlooked Amidst Shuffling Changes
OCC Reorganizes Bank Supervision and Examination Functions
The Office of the Comptroller of the Currency (OCC) has announced a significant reorganization of its bank supervision and examination functions. This restructuring aims to address the increasing complexity in bank operations, particularly in cybersecurity threats and technology risks.
The reorganization involves the appointment of Jonathan Gould as Comptroller of the Currency, who prioritizes tailored oversight, financial risk management, and innovation support. Gould, a former senior deputy and chief counsel familiar with supervisory functions, is expected to lead a more strategic and risk-based supervision approach.
One of the key changes is the combination of the supervision function for large banks with that for midsize and community banks. Jay Gallagher, the senior deputy comptroller for supervision risk and analysis, will lead the newly formed chief national bank examiner office. This move provides opportunities for career development and progression for the OCC's examination workforce.
The IT and Security function gains prominence as operational resilience and cybersecurity become central to the OCC’s regulatory approach. Greg Coleman will assume responsibility for the combined bank supervision and examination office, and the leader of the Information Technology and Security office will be named to a new senior deputy comptroller role and will serve as a member of the OCC's executive committee. This move expands the role of the Information Technology and Security function within the agency, reinforcing the importance of technology and security in bank regulation.
The OCC's reorganization may imply a focus on strengthening cybersecurity measures within the banking industry. The agency has emphasized cybersecurity and financial system resilience as high-priority regulatory issues, as detailed in their July 2025 Cybersecurity and Financial System Resilience Report.
The reorganization takes effect in June, and it may signal a shift towards modernizing and streamlining the OCC's regulatory processes. This move aims to allow for the seamless sharing of expertise and resources among bank supervision teams.
Meanwhile, the Consumer Financial Protection Bureau has signaled a shift in focus away from oversight on non-depository institutions and towards resources that can be used by states. The Capital One-Discover merger has been approved by the Federal Reserve and the OCC, and Grovetta Gardineer, a 14-year veteran of the OCC, will retire in May after logging 37 years of federal service. Beverly Cole, in charge of the midsize and community bank supervision office, will also retire in May.
The OCC's reorganization is part of a long-running Trump administration goal to streamline headcounts, initially at the management level. The Consumer Financial Protection Bureau's attempt to fire 90% of its workforce was halted by a court order.
In conclusion, the OCC's reorganization is a significant step towards addressing the evolving risks in technology, cyber threats, and third-party vendor management. The reorganization reflects a renewed focus on tailored oversight, financial risk management, and innovation support, and it expands the role of the Information Technology and Security function within the agency. The reorganization takes effect in June and may signal a shift towards modernizing and streamlining the OCC's regulatory processes.
The OCC's reorganization indicates a shift towards prioritizing technology risks and cybersecurity threats in the banking industry, integrating these aspects more prominently into the agency's regulatory approach. Moreover, the appointment of Jonathan Gould as Comptroller of the Currency and the restructuring of bank supervision functions emphasize the importance of financial risk management, innovation support, and tailored oversight in the finance and business sectors.
