Federal Bank Regulatory Agencies of the United States

Comptroller of the Currency

This is the oldest of the federal bank regulatory agencies. It was established by the Currency Act of 1863 and strengthened by the National Bank Act of 1864. The Comptroller is the primary supervisory agency for national banks.

Supervisory means enforcement while regulation means rule-making.

The Comptroller is a bureau of the Treasury Department and is headed by a single-person appointed by the President to a 5-year term. Of course, the question becomes, if a President has a 4-year term, doesn't that mean a 1-term President may not choose their own Comptroller. The answer is yes. This was done on purpose.

The Comptroller exercises control over the operations of national banks through a number of ways. Control includes...

the power to charter national banks,
the review of national bank branch and merger applications,
the implementation of regulations, and
examination and supervision of ALL national banks.

This means the Comptroller not only has oversight over national bank operations, but also determines who charters (starts) or expands a national bank. This is done through policy decisions. It is a lot of power for one person to have. And, to add to that, the Comptroller serves as a director of the FDIC.