Chairman Tanoue Praises Compliance Managers
Donna Tanoue, Chairman of the FDIC, addressed ABA's National Compliance Schools and gave the attendees high praise in their role as compliance managers. "No one has to tell you that your actions as a compliance manager have a direct and lasting affect on the success of your institution," she said.
Cutting back on compliance is not a savings for the institution in the long run, according to Tanoue. She warned against the temptation to cut costs by looking at the short-term savings of reducing compliance efforts. "The costs of noncompliance are far greater than the costs of compliance." Tanoue cited the costs of recalculations and restitution, damaged reputations, and loss of consumer and market confidence as costs of noncompliance.
Tanoue also stressed that compliance is good business. "It goes to the heart of your institution's reputation in the communities it serves."
She warned of the risk of overlooking the power of consumer expectations and reactions. Consumers want to be treated fairly, she stated. Failure to do so constitutes real risk. Citing examples such as the attention given to ATM fees, privacy, predatory lending, and know your customer concerns, she stressed that unhappy customers can hurt your bottom line and your market position.She closed by telling the audience that she commends "all of you for the work that you do every day to minimize risk at your institution and ensure that consumers of financial services enjoy the rights afforded to them under the consumer laws."
Copyright © 2001 Compliance Action. Originally appeared in Compliance Action, Vol. 6, No. 3, 4/01
First published on 04/01/2001