Deborah Bailey to Lead Deloitte’s Banking and Securities Regulatory Practice
Deborah Bailey, who led the first round of stress tests in 2009 as the deputy director of the Federal Reserve Board’s supervision and regulation division, has been named the banking and securities regulatory practice’s managing director.
Additionally, Christopher Spoth and John Corston, senior regulators from the Federal Deposit Insurance Corporation, have joined Deloitte’s banking and securities team as directors.
“As a market leader for bank regulatory consulting, these three strategic moves are a testament to Deloitte’s continued commitment and investment in the area our clients are grappling with most: adapting to a new era of regulatory expectations,” said Bob Contri, vice chairman and the leader of Deloitte’s financial services industry group.
“We see this as a particularly important year with a number of rules from the Dodd-Frank Act likely to come on line, along with a number of other significant rules from around the world that will affect our client base.”
Bailey joined Deloitte in June 2009 as a director. In her new role, Bailey will serve as the leader of the regulatory practice’s strategy, development and delivery of regulatory and related consulting services to Deloitte’s banking and securities clients nationally, as well as interface globally with regulatory practices at other Deloitte Touche Tohmatsu Limited member firms.
With more than 35 years experience directing a variety of supervisory efforts at large federal regulatory agencies like the Supervisory Capital Assessment Program, Bailey’s experience-rich background includes extensive knowledge of both the U.S. and global regulatory environment. During her time at the Federal Reserve, she oversaw the supervision of all U.S. and foreign banking organizations operating in the country.
Prior to joining the Federal Reserve in 1997, she served as the New York field office director for six years at the Office of the Comptroller of the Currency, where she began her career.
Spoth and Corston have more than five decades of combined experience at the FDIC. They will work with Deloitte’s U.S. banking and securities clients advising on a wide range of issues including regulatory, compliance, mortgage, merger & acquisition and resolution issues.
As the senior FDIC executive responsible for its risk management supervision program, Spoth oversaw the agency’s efforts around examinations, enforcement actions, applications, consumer protection and anti-money laundering programs at more than 4,600 banks nationwide.
He served as senior deputy director in the division of risk management, a position created in 2006, and interfaced directly with the FDIC chairman and board members, as well as other banking regulatory agencies, senior officials at the Department of the Treasury and Congress. He also had key roles during the financial crisis, including the FDIC debt guarantee program and activities involving large financial institutions.
Prior to that role, Spoth was regional director of the FDIC’s New York region and also led its international department. He joined the FDIC in 1980.
Corston served as the associate director of the FDIC’s complex financial institutions office (which expanded its scope after Dodd-Frank was passed), where he was responsible for overseeing bank holding companies with more than $100 billion in total assets, as well as financial institutions identified as systemically important.
He was a member of the Financial Stability Oversight Council steering committee and served as the agency’s liaison with the Office of the Comptroller of the Currency and the Federal Reserve Board regarding risk-related matters at large complex financial institutions and holding companies. Corston has extensive experience dealing with stress testing and resolution planning; he also led the FDIC’s work on mortgage servicing-related matters. He began his career with the FDIC in 1987.
“Financial institutions are adapting to a new regulatory era where compliance needs to be coupled with an understanding of the structural changes likely to face the industry,” said Kevin McGovern, who leads Deloitte’s governance, regulatory & risk strategies services practice.
Deloitte’s team of more than 200 banking and securities regulatory professionals is recognized for balancing in-depth knowledge with technical experience in the industry. The firm’s professionals include senior supervisory officials and examiners formerly from the Federal Reserve, Office of Thrift Supervision, OCC, and FDIC.
“Deloitte continues to build momentum: Along with the existing senior members of Deloitte’s banking and securities regulatory team, Chris and John’s deep industry knowledge and experience will allow the firm to provide even more insight to clients on their most complex regulatory and risk issues,” added McGovern.
“These require significant judgment and breakthrough thinking to help develop new strategies, goals and solutions. Combined with our capabilities in risk and capital consulting, Deloitte is ideally positioned to assist clients across the entire spectrum of challenges that they face.”