Fed’s Raskin: Regulators don’t have a “gotcha” mentality

U.S. financial regulators are not being “overzealous” in their approach to company oversight, says Federal Reserve Governor Sarah Raskin. In response to the market meltdown, regulators do not have a “gotcha mentality,” she said during a recent panel discussion. However, she did note a “disturbing uptick” in operational risk at financial institutions, citing the outsourcing of mortgage compliance to third-parties without proper supervision. She called for a “culture of compliance” within financial organizations and said there is better coordination between state and federal agencies.