Bankers Accountability Act of 2012
On December 1, I will prefile the Bankers Accountability Act of 2012. The State Auditor is currently being sued by the Missouri Bankers Association to block attempts by the Auditor to ensure that the Division of Finance is conducting its proper oversight function of Missouri chartered banks. This bill would clarify the Auditors authority to conduct such a performance audit of the Division of Finance as well as performance audits of any state departments and divisions.
The need for an audit of this kind became apparent when a recent audit of the division’s oversight of four failed banks suggested that the division had not performed timely and adequate examinations of savings and loans associations, had not followed established criteria during the examinations, and had overcharged all Missouri chartered banks by a total of $1.5 million over the past 3 years for examinations.
Such an apparent failure on the part of the Division of Finance clearly warrants such action so that the health of our banking system can be accurately gauged. The Act does not thrust new regulations on banks; it simply allows the Auditor to make sure that lawful oversight is done effectively.