Acting Comptroller Rodney E. Hood Discusses Regulatory Agenda at U.S. Chamber of Commerce Forum

Key Takeaways

• Regulatory Innovation: The OCC is focused on modernizing financial oversight to balance innovation with financial stability. Recent efforts include accelerating bank-fintech partnerships and expanding responsible engagement with digital assets.
• Financial Inclusion: The OCC is committed to advancing financial inclusion as a key economic and moral priority. Through Project REACh, the OCC works to enhance access to credit, housing, and small business resources in underserved communities.
• Recent Enforcement Actions: Under Hood’s leadership, the OCC has taken significant enforcement actions against institutions and individuals for unsafe practices, including cease-and-desist orders against Eastern National Bank and EH National Bank, as well as civil penalties and prohibitions against individuals involved in misconduct at Wells Fargo and Grand Bank for Savings.
• Regulatory Modernization: The OCC is actively engaged in the EGRPRA review process to streamline outdated regulations and adjust capital requirements to ensure they support growth without stifling innovation.

Deep Dive

Acting Comptroller of the Currency Rodney E. Hood recently addressed the U.S. Chamber of Commerce Capital Markets Forum, sharing insights into the Office of the Comptroller of the Currency’s (OCC) regulatory strategies aimed at modernizing financial oversight while maintaining the stability and resilience of the U.S. banking system. Hood emphasized the importance of balancing innovation with effective regulation to foster economic growth, financial inclusion, and institutional accountability.

In his opening remarks, Hood underscored the OCC’s long-standing role in supervising more than 1,000 national banks and federal savings associations, which together hold nearly $16 trillion in assets. Reflecting on the OCC’s history, dating back to the Civil War, Hood reaffirmed the agency’s mission to safeguard public trust while empowering progress in a dynamic financial environment.

“The OCC’s mandate remains unchanged: to ensure that our financial institutions operate safely and soundly, enabling them to serve as a foundation for economic growth and resilience,” Hood stated.

Hood outlined four key strategic priorities guiding the OCC’s approach to financial regulation and institutional oversight:

1. Accelerating Bank-Fintech Partnerships: Hood emphasized that innovation is vital for the financial system's growth. He highlighted the OCC’s support for responsible innovation, including the development of fintech partnerships through regulatory sandboxes and TechSprints. Hood also discussed the agency’s approval of a national bank’s transformation into a technology-driven small business lender, aimed at expanding credit access for underserved communities.
2. Expanding Responsible Engagement with Digital Assets: The OCC has worked to provide clarity for banks seeking to engage with digital assets and distributed ledger technologies, Hood explained. The OCC’s issuance of Interpretive Letter 1183 in March 2025, which removed the requirement for banks to seek prior “non-objection” for digital asset activities, marked a significant step in encouraging responsible innovation while maintaining oversight.
3. Advancing Financial Inclusion: Hood reiterated that financial inclusion is both an economic and moral imperative. He highlighted the OCC’s Project REACh (Roundtable for Economic Access and Change), which focuses on expanding access to affordable housing, supporting minority depository institutions, and increasing access to credit for underserved communities. Hood emphasized that achieving greater inclusion will enhance national productivity and resilience.
4. Modernizing Regulation to Unleash Growth: Hood discussed the need for regulatory modernization to promote growth while ensuring financial safety. The OCC has been actively involved in the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) review process to eliminate outdated regulations that no longer reflect today’s financial realities. Hood also highlighted the OCC’s work on adjusting capital requirements to ensure they are appropriate and not excessive.

Recent Enforcement Actions Under Hood’s Leadership

As part of the OCC’s broader commitment to ensuring financial stability and accountability, the OCC has taken several actions to address deficiencies and unsafe practices within the banking sector. These actions exemplify the OCC’s ongoing efforts to hold financial institutions and affiliated individuals accountable for maintaining high standards of conduct.

Some notable enforcement actions include:

• Cease and Desist Orders:The OCC issued a cease and desist order against Eastern National Bank in Miami, Florida, due to unsafe practices related to strategic and capital planning, earnings, and management supervision. This new order replaced an earlier one from 2020.
• Similarly, the OCC issued a cease and desist order against EH National Bank in Beverly Hills, California, for deficiencies in management and oversight practices, including risks related to capital planning, liquidity, and interest rate risk. The OCC’s action replaced a formal agreement from 2023.
• Enforcement Actions Against Individuals:
  The OCC imposed a $100,000 civil money penalty and a personal cease-and-desist order against David Julian, former Chief Auditor at Wells Fargo, for his involvement in the bank’s systemic sales practices misconduct. The OCC also issued a $50,000 civil money penalty and a personal cease-and-desist order against Paul McLinko, former Executive Audit Director at Wells Fargo, for the same issue.
• Additionally, the OCC issued an Order of Prohibition against Edward Langton, former CEO and Chairman of Grand Bank for Savings, for engaging in unsafe practices and violating conflict of interest requirements. Langton received a personal commission for brokering a real estate transaction for the bank, despite being directed not to do so.

These actions demonstrate the OCC’s commitment to enforcing rigorous standards of accountability and integrity within the banking sector, ensuring that institutions and their leadership adhere to the highest ethical and regulatory standards.

Charting a Path for Financial Resilience

In conclusion, Hood reaffirmed the OCC’s role in shaping a financial system that supports growth, inclusion, and innovation while maintaining the safety and soundness of the banking sector. Drawing inspiration from President Lincoln’s words, “The best way to predict the future is to create it,” Hood expressed confidence in the OCC’s ability to guide the U.S. banking system through modern challenges, ensuring its continued leadership in the global financial landscape.

“Through proactive regulation and thoughtful oversight, we are creating a future where American banks can continue to lead in innovation, inclusion, and resilience,” Hood concluded.

Hood’s remarks highlighted the OCC’s efforts to balance regulation with the need for innovation, ensuring that the U.S. financial system remains both secure and competitive in a rapidly evolving global market.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.