Published : Thursday, June 8, 2017 | 5:38 AM
President Donald Trump intends to nominate Joseph Otting, former CEO of Pasadena’s OneWest Bank and an ally of Treasury Secretary Steven Mnuchin, to become comptroller of the currency, a powerful financial regulator who oversees federally chartered banks, according to a White House announcement.
The nomination could revive the Democrats’ criticism of Mnuchin about how he handled One West Bank.
In 2009, Mnuchin led a group of investors who put up about $1.6 billion to buy the failed Pasadena IndyMac bank, a leading subprime mortgage lender, and renamed it OneWest.
Mnuchin served as the bank’s chairman from 2009 to 2015 when Otting was CEO. At that time, Democrats accused the bank of being “a foreclosure machine” that helped him profit from the 2008 financial crisis while many homeowners were unable to make their mortgage payments.
One West was sold to CIT Group in 2015 for $3.4 billion.
The Office of the Comptroller of the Currency is an independent agency within the Treasury. If appointed to the role, Otting is expected to play a significant role in carrying out President Trump’s promise to roll back regulations, including reviewing the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into federal law by President Barack Obama on July 21, 2010.
Trump has formally nominated 63 of the 559 positions which require Senate confirmation, with 39 confirmed, 16 awaiting nominations and 441 lacking any nominee, according to the Partnership for Public Service.
Senate confirmation is required for the role.
Otting holds a Bachelor of Arts from the University of Northern Iowa and is a graduate of the School of Credit and Financial Management at Dartmouth College.
He started at Bank of America, where he held positions in Branch Management, Private Banking and Commercial Lending. From 1994 to 2001 Otting was with Union Bank, where the last role he held was Executive Vice President and Head of Commercial Banking.
More recently, Otting worked for US Bank, a subsidiary of US Bancorp. Otting served as Market President of US Bank in Oregon from December 2001 to June 2003 and as Executive Vice President and Manager of East Region Commercial Banking Group from June 2003 to April 2005.
Until his departure in 2010, he held the positions of served as one of eight Vice Chairman, Head of Commercial Banking, and Head of Wholesale Middle Market Business. During his tenure, he led US Bank’s efforts in California as the senior executive responsible for expansion in the region.
Otting, was terminated as Chief Executive Officer of OneWest Bank in 2015.
He serves on the California Chamber of Commerce Board, the Chamber Executive Committee and the Chamber Audit Committee, which he chairs. He is Chairman of The Killebrew Thompson Memorial Foundation and is a member of The 100 Club.
Otting and his wife Bonnie now live in Santa Monica.