Patomak’s Keith Noreika was quoted in American Banker today.

He provided an explanation as to why Comptrollers of the Currency are harder to confirm and described how the agency’s unique statutory language incentivizes an administration to appoint someone as an acting comptroller indefinitely than it is to nominate someone for the role permanently.

“‘Normally under the Vacancies Act, the person [nominated for Acting Chair] has to either be the second in command and an employee of the agency for 90 days, or it has to be a Senate confirmed person from some other position,’ Noreika said. ‘Then there would be a time limit on that as well.’

“None of those requirements apply to acting comptrollers, however. Instead, Noreika said, two provisions of the National Bank Act — which, according to interpretations from the Office of Legal Counsel override the Vacancies Act — give the acting comptroller full powers of the office, including full FDIC board membership.

“‘The acting comptroller job is set forth at one of the initial provisions of the National Bank Act establishing the Office of the Comptroller that allows the Secretary of Treasury to designate like four or five deputy comptrollers,’ he said. ‘And to name one of those deputies the statutory ‘First Deputy Comptroller’ who, under a separate provision of the National Bank Act, may act with the full powers of the office when there is no Senate confirmed Comptroller of the Currency.’

“Noreika said another incentive is that acting comptrollers can set their own pay, potentially much higher than a Senate-confirmed appointee. The Comptroller of the Currency’s salary is determined by the Executive Schedule, a compensation arrangement that places executive appointees within different bands of compensation depending on level of responsibility.”

Read the full story here.