Citizens Financial Group plans to merge its two banking charters into a single national bank. The move would make the OCC the bank's primary regulator and eliminate the costs of dealing with the FDIC and state officials.
Vice chairman set to leave agency on Monday; big regionals are caught in the middle, losing share to both the biggest national banks and community institutions.
The outgoing No. 2 of the Federal Deposit Insurance Corp. and the agency's former chair say the proposed changes would increase the likelihood of another financial crisis.
FDIC Vice Chairman Thomas Hoenig has been a tough critic of risky practices by big banks and a key voice among federal regulators in support of stronger capital requirements.
The senior official said U.S. regulatory agencies should not rush to complete certain final aspects of Basel III, to prevent the new standards from conflicting with existing rules.
