Academic journal article ABA Banking Journal

FDIC's New Supervision Chief Speaks Up

Academic journal article ABA Banking Journal

FDIC's New Supervision Chief Speaks Up

Article excerpt

In September veteran regulator Paul G. Fritts retired from the post of FDIC's executive director of supervision and resolution. John W. Stone, most recently deputy to Acting FDIC Chairman Andrew C. Hove, Jr., replaced Fritts in the post, which combines oversight of the agency's examination effort as well as its resolution of failed banks and savings banks. Stone, 50, had served in various capacities with the agency since 1965, with the exception of a short stint with a bank consulting firm.

ABA Banking Journal caught up with Stone recently to discuss changes in the banker-examiner relationship. Tensions move in cycles. Stone served as director of the Division of Supervision for a year and a half prior to becoming deputy to the chairman. He says the relationship between bankers and examiners, often strained in recent years, tends to go through a cycle. As the nation's surviving ag banks in the Midwest emerged from their troubles in the 1980s, he points out, it was not unusual to hear things like, "Your examiners told us things that we didn't like at the time, and quite frankly we were very upset over, but in retrospect, were very helpful."

"I'm not alleging by any stretch that examiners are the best thing to happen to any bank," says Stone, but he says the agency heard much the same from bankers in the Southwest a few years ago, and is starting to hear similar things from bankers in the Northeast. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.