By Damian Paletta
Wall Street Journal
The Federal Deposit Insurance Corp. on Tuesday said it was creating two new divisions to change its structure as part of its implementation of the Dodd-Frank Act, creating an Office of Complex Financial Institutions and a Division of Depositor and Consumer Protection.
The Office of Complex Financial Institutions (which the agency has assigned the acronym CFI) “will perform continuous review and oversight of bank holding companies with more than $100 billion in assets as well as non-bank financial companies designated as systemically important by the new Financial Stability Oversight Council,” the FDIC said. This division will also be in charge of using the FDIC’s new liquidation powers over “bank holding companies and non-bank financial companies that fail.”
While the FDIC searches for a permanent director for this division, the office will be temporarily run by FDIC-veteran Art Murton, who heads the agency’s insurance and research division.
The Division of Depositor and Consumer Protection (which the FDIC is referring to as DCP) “will provide increased visibility to the FDIC’s compliance examination and enforcement program,” the FDIC said. The division will also be charged with raising awareness about how deposit insurance works.
The agency has not found a permanent director for this agency, and FDIC vice chairman Martin Gruenberg has taken a lead role in getting this division up and running.