Morning Consult, March 2, 2020: Otting’s Approach to CRA May Not Be in the Best Interests of His ‘Customers’
In early 2018, Comptroller of the Currency Joseph Otting raised eyebrows by describing banks as his agency’s “customers” in a banking conference speech. A powerful regulator referring to those he oversees as his customers struck many as inappropriate.
These and other troubling elements of Otting’s approach notwithstanding, his strident rhetoric and public stumbles have galvanized opposition. Beyond describing banks as his customers, he stated in an interview that he would not “tolerate” community organizations that “disrupt” the ratings process. In front of the House Financial Services Committee, he indicated that he had “never personally observed” discrimination in banking. Not since the Great Recession has bank regulation mobilized such widespread activism. In addition to a flood of public statements, op-eds and street protests, the backlash to Otting’s proposals has included a New York Times editorial board opinion and top-tier focus from the House Financial Services Committee.
In a June 2018 article, the Reputation Institute indicated that the most effective way of counteracting negative sentiments among bank customers is by demonstrating ethical behavior and good citizenship. In this regard, Otting isn’t doing his “customers” any favors.
