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GAO Probe Extends to Cover NCUA and Others
Thursday, June 30, 2016 6:35 AM

The National Credit Union Administration has been added to a list of regulators being examined in a Government Accountability Office probe, according to a report in the Wall Street Journal Wednesday. The investigation began with the Federal Reserve Bank when Rep. Maxine Waters (D-CA) and Rep. Al Green (D-TX) expressed concerns about whether regulatory examinations were unbiased.

That probe has broadened in scope to include the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp., as well as the NCUA.

According to a Wall Street Journal, Lawrence Evans, an economist and director in the GAO’s financial markets and community investment unit, said, “We have started up a second job. We have ongoing work looking at all of those entities in some capacity… but this will be the first time we are looking at them through the lens of supervisory independence, or what some would call regulatory capture.”

The regulatory capture originated with allegations from a former New York Fed staff member who indicated the Fed was being lenient with Goldman Sachs Group, Inc.