Regulations should have in place rules by which examiners can assess the institution’s ability to make sound decisions based upon the required activities. Compliance equates to secure; non-compliance equates. Banks were allowed to either issue or purchase loans that simply didn’t make sense and likely shouldn’t have been allowed (black hole quadrant?). At some level there should have been rules by examiners could’ve assessed the situation, identified there was a problem and required remedial steps be taken.”]
Source: https://www.cuinfosecurity.com/blogs/regulatory-compliance-works-p-88