OTS takes another bullet

Late news on the regulatory front. Officials at the Office of Thrift Supervision allowed 5 banks to improperly report capital infusions in a way that can make them appear healthier, a big blow to an agency already under fire for its role in the financial crisis. The OTS allowed banks to backdate capital infusions to earlier quarters, which would have allowed them to skirt regulatory penalties that might have occurred had their capital levels fallen below certain thresholds. OTS had already been under fire for its handling of IndyMac Bank. It's just one more data point that leads GlobalRiskJobs to believe that BIG change is going to come on the regulatory front sooner rather than later.