Following reports that the Office of the Comptroller of the Currency (OCC) hired an individual with falsified credentials as Deputy Comptroller and Chief Financial Technology Officer, the Chairman of the Financial Institutions and Monetary Policy Subcommittee, Rep. Andy Barr (KY-06), Chairman of the Oversight and Investigations Subcommittee, Rep. Bill Huizenga (MI-04), and Chairman of the Digital Assets, Financial Technology and Inclusion Subcommittee, Rep. French Hill (AR-02), sent a letter to Acting Comptroller of the Currency, Michael Hsu. The lawmakers are demanding a briefing from the agency to address concerns related to OCC hiring practices and departmental restructuring in the wake of the former employee’s departure.
Read the lawmakers’ full letter to Acting Comptroller of the Currency Hsu here.
Read key excerpts from the lawmakers’ letter below:
“We write to express our concerns over recent reports that the Office of the Comptroller of the Currency (OCC) hired, in March of this year, an individual with falsified credentials and a questionable background. The individual was reportedly hired as Deputy Comptroller and Chief Financial Technology Officer to lead the newly established Office of Financial Technology (Office), which incorporates the former Office of Innovation established in 2016.
“Reports indicate that the individual hired to lead the Office made easily disprovable and false claims regarding work experience, prior employment, and qualifications, and had a concerning history of legal infractions.
“While restructuring of the Office was intended to help bolster the agency’s expertise and provide high-quality supervision, that seems to be far from the case. Importantly, the Office provides input on regulatory and supervisory changes considered by the OCC for national banks and federal savings associations to address technological innovations. Setting the foundation for the Office’s mission and goals would fall to the leader of that office—the Deputy Comptroller and Chief Financial Technology Officer. Given the significance of this role and its responsibilities, it would therefore stand to reason that vetting the leadership of such an important Office would be done with significant due diligence.
“There are significant risks from negligent vetting practices at the OCC that cannot be understated. There is reputational risk to the OCC through loss of credibility if such high-level positions can be filled with unqualified individuals. There is also a risk of establishing an OCC culture where positions are not based on qualifications and merit but instead on personal connections or other characteristics not aligned with the roles’ duties and responsibilities. And most importantly, there is risk that the OCC has broader problems with vetting personnel, which can blossom into larger risks, including to safety, soundness, and stability of the banking system.
“There is risk that some of the recently proposed federal banking rules from the OCC were made with input from unqualified individuals, or individuals with complacency toward attending to detail and accuracy. The OCC, with officials at the Federal Reserve Board and the Federal Deposit Insurance Corporation, has been issuing an onslaught of proposals this year. The deluge of recent proposals, guidance, statements, and principles to essentially rewrite the rules of the road for financial institutions in the United States is staggering Yet, significant proposals with the potential to invoke systemic instability, if not properly calibrated, have been put forward with little to no analytical underpinnings or justifications, possibly reflecting staffing inadequacies.
“To date, there has been no clarification provided by the OCC surrounding the reports regarding the agency's prior Deputy Comptroller and Chief Financial Technology Officer. During the hearing at which you testified on November 15, 2023, it was made clear by Chair McHenry: ‘the stakes are too high to take your eyes off the ball.’ The OCC cannot continue to operate with blatant disregard to its mission and its commitment to the American people.”
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