The Recession Affected Everyone

The economy is much like a wild animal, untamable and prone to unexpected changes in emotion and course. This was demonstrated around three years ago when the United States of America went from a relatively strong period of economic growth to one of the worst recessions in the country’s history. The Dow Jones, a stock index of the thirty strongest companies in the nation, fell more than 50 percent from its high of more than 14,000 points in October 2007 to less than 6,500 points in March of 2009. This was probably the peak of the recession as financial companies were failing along with the automobile industry of the United States. Corporations, white-collar employees and blue-collar employees were all affected by the decline of the American economy as profits fell and companies laid off millions of employees to maintain semblance as organizations.

Checks are Necessary in the Economy

The reasons for the recession are numerous but there is a consensus about the initial shocks that started it. Banks packaged huge amounts of loans that they made to consumers into billion dollar securities known as residential mortgage backed securities (RMBS). These securities included sub-prime loans made to borrowers with high default risks and when a significant portion of loans were in default, the securities lost value. There was a crisis in the market as companies were unable to estimate the degree of losses in the securities and refused to purchase them. This caused banks to be stuck with these terrible assets on their books that decreased profitability immensely. Had there been better oversight on these banks and the securities, the recession may have been avoided, but there is no way to tell for sure.

The Federal Reserve and the OCC: Maintaining Order

The main organizations in charge of monitoring banks and ensuring that they have sustainable business practices are the Federal Reserve and the Office of the Comptroller of the Currency (OCC). The Federal Reserve serves as the national bank of the United States and provides capital to banks as well as oversight over them. The OCC was established in 1863 to charter, regulate and supervise banks in the United States.

National Bank Examiner Duties

A national bank examiner spends about half of his or her time travelling to various banks and speaking with his or her management teams to assess the standing. Bank examiners are responsible for analyzing a bank’s ability to function properly. This includes their default risks, geographic placement, interest rate premiums and other factors. Banks are rated on a scale using data such as their financial statements, management discussions, growth potential and other components.

Becoming a National Bank Examiner

One cannot become a national bank examiner as an entry-level position. A person must apply to the position of assistant national bank examiner at either the Federal Reserve or OCC. In order to be considered for this position, either one must have a bachelor’s degree in finance, accounting, economics, or other related fields, or three years of work experience related to the position, or a combination of education and experience such as a CFA certificate. Working as an assistant national bank examiner for several years leads to the Uniform Commissioned Examination (UCE) and successful completion of the UCE leads to a commission as a national bank examiner and the ability to oversee bank examinations.