GAO asks Congress to consolidate federal financial agencies

A report released by the Government Accountability Office Monday said the fragmented U.S. financial regulatory structure and overlaps within that structure created inconsistencies in examination activities and the regulatory process. It suggested Congress consolidate federal agencies over depository institutions.

The report, requested by current and former Republican members of the House of Representatives’ House Financial Services Committee, was intended to review the financial regulatory structure and any related impacts of fragmentation or overlap, and to provide suggestions to Congress to alleviate certain fragmentation and overlap by federal agencies overseeing depository institutions, among others.

It found that at depository institutions, inconsistencies in depository institution regulators’ examination activities can result in different conclusions regarding the safety and soundness of an institution as well as difficulties identifying emerging trends.

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