Dive Brief:

• Rodney Hood, a former National Credit Union Administration chairman, has been appointed acting comptroller at the Office of the Comptroller of the Currency, effective Monday.
• “The strong leadership and career experience of Rodney Hood will strengthen the OCC’s efforts to ensure the safety and soundness of the banking system while also enhancing economic growth," said Treasury Secretary Scott Bessent, who appointed Hood to the position, in a Friday news release.
• In an OCC news release, Hood said he “will work diligently to promote a regulatory environment that is effective without being excessive. I remain committed to a balanced framework — one that fosters innovation, expands financial inclusion, and ensures that all Americans have fair access to the financial services they need to thrive.”

Dive Insight:

At the OCC, Hood replaces Michael Hsu, who had been appointed by former Treasury Secretary Janet Yellen and served as acting comptroller since May 2021. Whether President Donald Trump will nominate Hood or someone else to be the Senate-confirmed comptroller, or Hood will serve as acting comptroller for an extended period as Hsu did, remains to be seen.

Hood’s appointment also gives him a seat on the board of the Federal Deposit Insurance Corp. and adds to the imbalance on the FDIC board. FDIC rules mandate no more than three board members can be from the same political party. 

Hood’s appointment makes sense: Since he’s twice received Senate confirmation – once in 2005 and again in 2019 to serve on the NCUA board – he fulfills the requirements of the Federal Vacancies Act and brings regulatory experience, said Grant Butler, a partner at law firm K&L Gates.  

Hood served as the NCUA’s vice chairman from 2005 to 2009, according to his LinkedIn profile. Hood became the first Black American to lead a federal bank regulatory agency when Trump appointed him chairman of the NCUA board in 2019, the OCC release said. He held that role until January 2021. He continued to serve on the NCUA board until January 2024. 

Still, “the OCC is a very different agency than the NCUA and regulates far larger and more sophisticated financial institutions,” Butler noted in an email.

Michele Alt, a co-founder and partner at financial services advisory and investing firm Klaros Group, expects a “little period of getting comfortable, for some bankers,” with Hood’s experience. But, “my guess is there is more relevant experience there than not,” said Alt, an OCC veteran.

For his part, Hood has been a proponent of fintech partnerships at the NCUA as well as the use of artificial intelligence in financial services. That openness to innovation aligns with what’s been expressed by Acting FDIC Chair Travis Hill, “which will provide synergy on that front on the FDIC Board,” Butler said.

Alt noted Hood was an advocate of new credit union formation during his time at the NCUA, and she hopes and expects to see a similar openness to new national bank formation. His tenure at the NCUA was also marked by lack of failures or crisis in the credit union community, which bodes well, she said. 

Senate Banking Committee Chairman Tim Scott, R-SC, said in a statement he looks forward to Hood “ensuring the agency stays singularly focused on carrying out its important mission of safeguarding the safety and soundness of our banking system.”

During his tenure at the NCUA, Hood was a voting member of the Financial Stability Oversight Council, chairman of the NeighborWorks America board, and vice chair of the Federal Financial Institutions Examination Council.

In the private sector, Hood has worked in retail finance, commercial banking, affordable housing and community development, the OCC release said. He’s held positions at JPMorgan Chase, Wells Fargo and NationsBank (which merged with BankAmerica to become Bank of America). Hood, a native of North Carolina, is an alumnus of the University of North Carolina at Chapel Hill.

“Hood's extensive experience and leadership in financial services will be invaluable in overseeing the safety and soundness of the nation's banking system while ensuring that America’s leading retail banks can continue to meet the evolving needs of consumers and communities,” Consumer Bankers Association CEO Lindsey Johnson said in a statement.

On the fintech side, Penny Lee, CEO of the Financial Technology Association, said Hood brings “a strong appreciation of the positive impact of financial innovation and bank-fintech partnerships. We look forward to working with him on our shared goals of promoting financial competition, choice, and inclusion.”