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Democrats Slam Wall Street Regulator’s Decision on Bank Oversight

  • OCC decision to leave examiners inside banks draws criticism
  • Brown and Warren among senators who call the move ‘troubling’

A decision by President Donald Trump’s newest Wall Street regulator to keep government examiners inside banks is drawing criticism from Senate Democrats, who said it will make watchdogs more likely to sympathize with finance executives they are responsible for policing.

For years, the Office of the Comptroller of the Currency had intended to pull hundreds of examiners out of the biggest banks and relocate them to government offices -- part of an effort to prevent regulators from getting too cozy with companies they oversee. But in one of his first moves since taking over the OCC last month, Joseph Otting changed course. The former banker said the plan to remove supervisors wasn’t practical, adding that the agency had taken other steps to prevent “regulatory capture.”