Legal Definitions - Dodd-Frank: Title III - Transfer of Powers to the Comptroller of the Currency, the Corporation, and the Board of Governors

Definition: Title III of the Dodd-Frank Act aims to streamline the supervision of depository institutions and their holding companies by abolishing the Office of Thrift Supervision (OTS) and transferring its regulatory and rulemaking authority to the Office of the Comptroller of the Currency (OCC), Federal Deposit InsuranceCorporation (FDIC), and Board of Governors of the Federal Reserve System (Federal Reserve). It also reforms federal deposit insurance.

Examples: Before Title III, the OTS was responsible for regulating state and federal savings associations and their holding companies. However, after the transfer of powers, the OCC, FDIC, and Federal Reserve acquired regulatory and rulemaking authority over these institutions. Additionally, Title III reformed federal deposit insurance by increasing the maximum share insurance from $100,000 to $250,000 and requiring the FDIC and National Credit UnionAdministration to fully insure the net amount that any depositor at an insured deposit institution maintains in a noninterest-bearing transaction account.

Explanation: The examples illustrate how Title III of the Dodd-Frank Act transferred regulatory and rulemaking authority from the OTS to the OCC, FDIC, and Federal Reserve, and reformed federal deposit insurance by increasing the maximum share insurance and requiring full insurance for noninterest-bearing transaction accounts. These changes aimed to provide for the safe and sound operation of the banking system, preserve and protect the dual banking system, ensure fair and appropriate supervision of depository institutions, and streamline their supervision and regulation.