BOSTON — The recent "unprecedented events of systemic proportions" have shown how important strong oversight of financial services is, FDIC Board Member Tom Curry told attendees at NASCUS' State System Summit.
He likened the relationship between regulators and financial institutions to that of parents who monitor and regulate the behavior of children.
The two parties are "not friends," and he noted that regulators "expect financial institutions to adhere to good practices."
Curry, who used to be Massachusetts commissioner of banks, noted the state was the first to charter credit unions. He said the original state law focused on three principles: the importance of service as part of the core mission of credit unions; governance, mandating that credit unions have a board, credit committee and a supervisory panel so that power is dispersed; and strong state oversight.
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