Exam Appeals Bill's Fate Is Up in the Air

The disagreement between financial institutions and regulators over changes in the exam process may not be resolved on Capitol Hill any time soon. The House Financial Services Committee hasn't scheduled a markup of a bill to allow financial institutions to appeal exams to an administrative law judge. A spokeswoman for the panel declined to say whether or when such a session might occur. No companion bill has been introduced in the Senate and the Obama administration hasn't taken a position on the measure. Therefore, even if it passes the House its future prospects are uncertain. At a Feb. 1 House subcommittee hearing, officials of all banking regulators spoke out strongly against the measure saying it would jeopardize safety and soundness and increase costs. Credit union and bank executives said it was needed to make the examination process more accountable.