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Jonathan Gould, the nominee to head up the Office of the Comptroller of the Currency, pledged to “shine a spotlight” on any de-banking activities during a Senate Banking Committee nomination hearing Thursday.
Gould, an OCC veteran, was nominated by President Donald Trump in February to serve as the comptroller of the currency; the agency is now led by Acting Comptroller Rodney Hood.
A partner at law firm Jones Day, Gould spent roughly three years as senior deputy comptroller and chief counsel of the OCC during the first Trump administration and the Biden administration. He’s also served as a lawyer for the Senate Banking Committee.
Republican senators including the committee’s chair, Tim Scott of South Carolina, sought to ensure Gould is aligned with recent banking agency moves away from reputational risk. Gould said he agreed with Hood’s decision to stop examining banks for reputational risk, and said he aims to ensure de-banking is not allowed in the banking system.
“I think too often reputation risk is used as a pre-text for other motives, and I think the regulators have at their disposal other forms of more easily quantifiable and just better understood, more precise, more objective terms, including litigation risk, [Bank Secrecy Act/anti-money laundering] compliance risk,” Gould said during the hearing.
In his opening statement, Gould advocated for allowing banks “to engage in prudent risk-taking.”
“In the years since 2008, bank regulators have at times tried to eliminate rather than manage risk, frustrating the ability of banks to fulfill their function,” he told the committee. “This blinkered approach to risk management has implications for the cost and availability of credit, the system’s ability to absorb shocks, and its adoption of new technologies and embrace of innovation.”
Gould said his top priorities would include “depoliticizing the banking system,” improving supervision, embracing innovation and ensuring banks support the economy.
“I will do everything in my power to ensure the continued relevance of our national banking system and its ability to support our national economy consistent with the President’s vision,” he told the committee.
With regard to digital asset innovation, Gould said during the hearing that many such activities are “clearly legally permissible,” and he hopes to engage on ways they can be done in a safe and sound manner. Gould did a stint as chief legal officer at blockchain firm Bitfury.
