OCC Fires 76 Probationary Staffers, Joining Other Regulators (1)

The Office of the Comptroller of the Currency is laying off 76 probationary employees, joining other federal banking regulators culling their workforces under an order from President Donald Trump.

The probationary employees were put on administrative leave until March 8, when their firings will officially take effect, according to a Friday all-staff email from acting Comptroller of the Currency Rodney Hood obtained by Bloomberg Law.

The termination process aligns with the Office of Personnel Management’s Jan. 20 guidance on probationary periods and administrative leave, Hood said.

“On behalf of the Executive Committee, I extend our heartfelt thanks to these employees for their federal service,” Hood’s email said. “We remain committed to ensuring a dignified transition process for them and supporting all OCC employees throughout these changes.”

The bulk of the firings appear to have hit the OCC’s midsize and community bank examiners around the country. The OCC also terminated a team of five economists inside the agency’s Washington office, according to a source who requested anonymity to protect their identity.

The layoffs came after the National Treasury Employees Union Chapter 302, which represents OCC employees, sent an urgent bulletin to its members late Thursday warning the national bank regulator “is planning on firing many probationary employees for reasons unrelated to their performance.”

“NTEU stands in opposition to these unlawful firings and is getting ready to work with you via administrative and legal action,” the message from Chapter President Crystal Maddox, obtained by Bloomberg Law, said.

The bulletin also gave probationary employees at risk of firing steps to take to protect themselves, such as saving their last three performance reviews and pay stubs.

The OCC declined to comment. The NTEU didn’t immediately respond to multiple requests for comment.

The union notice was distributed the same day a federal judge in Washington ruled that the NTEU, the National Federation of Federal Employees, and several other unions didn’t have standing to challenge the firings of probationary employees and other workers at federal agencies. The cases must be brought to the Federal Labor Relations Authority, the judge ruled.

The Trump administration has taken steps, however, to kneecap the FLRA and other independent panels that handle employee disputes. Former FLRA Chair Susan Grundmann said in a Feb. 13 lawsuit that Trump unlawfully terminated her, leaving the FLRA’s remaining two members with a partisan deadlock.

Bank Regulator Cuts

The dismissal of OCC probationary employees also comes after the Federal Deposit Insurance Corp. fired around 170 workers who were on the job for a year or less.

Consumer Financial Protection Bureau acting Director Russell Vought earlier this month fired around 70 probationary employees, including enforcement attorneys on active cases, and 70 to 100 “term” employees.

The terminated CFPB employees serving on fixed terms—with full civil service protections—included fellows and technologists reviewing Big Tech’s role in the consumer financial services sector.

While the administration has justified the cuts as a cost-saving measure aimed at reducing the federal budget, the OCC is funded largely through assessments charged to the banks it oversees and not through the congressional appropriations process.

The FDIC is largely funded the same way, while the CFPB gets its money through the Federal Reserve.