STEVEN L. ANTONAKES
No ‘radical changes’
After 14 years of working for the Massachusetts Division of Banks, Steven L. Antonakes is now running the regulatory agency.
Antonakes succeeded Thomas J. Curry as the state’s banking commissioner. Curry held the post for almost two decades and stepped down to accept a presidential appointment as a director of the Federal Deposit Insurance Corp.
Antonakes called being appointed to the new position by Gov. Mitt Romney a “truly humbling experience.” Antonakes, who previously served as senior deputy commissioner at the DOB, said he is ready to serve the banking industry and face the challenges that await him.
“Our philosophy will remain largely the same. We believe that we have a job to do as regulators and that includes insuring a safe and sound industry and also providing access to credit and consumer protection. By the same token, supervision shouldn’t be inefficient and shouldn’t impact [a financial institution’s] ability to meet their strategic objectives,” said Antonakes. “Change will happen, but we still represent a significant continuity to the industry.”
Antonakes joined the DOB in 1990 as a bank examiner. He was promoted to chief director of Community Reinvestment Act examinations in 1992 and then took over as senior deputy of administration and policy in 1995. In July 2002, Antonakes became senior deputy commissioner before assuming his position as commissioner this month.
Antonakes said his long tenure at the state Division of Banks is not unique, and the large number of longtime DOB employees is a key to maintaining the agency’s consistency. Joseph Leonard, senior deputy counsel of the DOB, and David J. Cotney, senior deputy commissioner of administration and policy, have worked for the DOB for 20 years and 14 years, respectfully.
“Through a really a good program of training and growth opportunity, we [the DOB] have developed a strong nucleus whereby we’ve all been here for [extended periods of time],” said Antonakes. “While there is change, by the same degree the same key players that have been assisting Curry in decision making and [conducting] the day-to-day operations are still here.”
Antonakes takes over as commissioner in what he said is an “extremely healthy” banking environment and looks forward continuing and nurturing the already established relationships between other members of the industry and the state Legislature.
“I don’t foresee radical change, by any means. The industry is extremely healthy and has very few problems – as opposed to 12 years ago during the 1990s recession. We attribute [industry strength] to very strong, seasoned management and low interest-rate environments … whereas we had to close 44 banks in the late 1980s. This recession bears no resemblance to the early ’90s,” he said. “As commissioner, [I will] be continuing to work with the [Legislature’s] banking committee. I look forward to getting to know the chairman [Sen. Andrea F. Nuciforo] as well as the past commissioner and Joe Leonard have.”
According to Nuciforo, D-Pittsfield, members of Legislature’s Joint Committee on Banks and Banking are confident in Antonakes’ abilities to succeed as commissioner.
“The governor made the right decision in appointing Steve because it keeps with the continuity in the division,” said Nuciforo. “I have worked with Joe [Leonard] and Tom [Curry] for a long time, and I’m sure I’ll be able to work just as well with Steve.”
Meanwhile, the DOB has already laid plans to enhance the efficiency of the industry and address concerns that were expressed by consumers and industry professionals last year. Antonakes said he realizes that regulation can be burdensome and stressed that while the DOB has a job to do, he and his staff are working toward reducing the regulatory burden that is often felt by industry professionals.
One short-term objective is to decrease the paperwork burden that banks and credit unions sometime experience through regulatory requirements. Antonakes said he and his team are looking at ways to streamline the filing systems that banks and credit unions currently abide by.
“There is a myriad of applications that banks have to file, so can we eliminate any of those applications or questions that we perhaps we don’t need?” said Antonakes. “For example, we always ask for CRA ratings, but we already have all of the ratings on file.” Antonakes questioned whether it is necessary for banks to continue to fill out their CRA rating on every form or application they submit to the DOB.
“We are also looking into making applications available on the Web, and taking advantage of new and existing technology, and putting more data in the hands of the consumer,” said Antonakes.
In the short term, Antonakes said he also plans to look at bank parity regulations in an effort to remain competitive in the industry and across state lines. Federal regulations and regulations in other states will be examined as part of the process, he said.
“We remain aware of the degree of competition that exists today and we want the state charter to be a viable charter, so we are looking to amend the parity regulations for both banks and credit unions,” he said. “We are also looking at an annual process by which we can monitor changes in other states so that we can critically review our parity regulations on a regular basis to ensure that our banks and credit unions are on an equal footing.”
‘The Better Good’
While Antonakes would not comment on pending issues such as the anticipated entry of Bank of America to the Massachusetts banking marketplace through its acquisition of FleetBoston Financial or pending bank and credit union charter conversions currently under consideration at the DOB, he did say the DOB was preparing for its Jan. 27 hearing regarding Bank of America and also discussing ways to better serve members of the industry through updated technology.
Because of constant changes in the interest-rate environment and mortgage industry, Antonakes said he is preparing for another year of refinancing highs and lows, and constant interest-rate fluctuations that may affect mortgage business.
“We are insuring a strong industry which maximizes choice and provides consumers with a competitive marketplace, and our immediate concerns have been mitigated by the strength of the industry,” said Antonakes. “However, we do have concerns with respect to the mortgage market. There is wide speculation that the refi boom is over and [interest] rates can’t get much lower. If that’s the case, there probably will be less business than there has been in the past and it’s possible there will be some consolidation.”
However, Antonakes maintains that no wrongdoing on the part of unscrupulous mortgage brokers will be tolerated, regardless of any changes in the industry.
“We did have to reissue our long-standing policy on rate locks this summer because, in all honesty, we received a few too many complaints on rate-lock issues. Rates are more likely to rise than to go down, so these issues will present themselves again … I’m hoping that a few rogue players don’t result in tarnishing what is otherwise a reputable industry.”
Nuciforo said Antonakes has done well in the eyes of the Legislature in the past and his tenure at the DOB demonstrates his ability to take on the role of commissioner with confidence.
“Steve [Antonakes] is a very competent [regulator] and I have complete confidence in his ability to serve as the commissioner of the Division of Banks and appropriately oversee the industry,” said Nuciforo. “He’s got a long service at the DOB and I have no doubt about his abilities to serve in the top job.”
According to Antonakes, the DOB over the years has worked hard to increase efficiency among members of the banking industry and will continue to do so going forward.
Following in his predecessor’s footsteps, Antonakes said he will carry on Curry’s philosophy to set high standards and continue to raise the bar of excellence for the agency.
“We can do more and we can do it more efficiently,” said Antonakes.
By doing so, Antonakes said he ensures that the DOB maintains a highly qualified staff to keep up to date with the rapidly changing banking industry.
“The industry has grown increasingly complex … I think we’ve done a good job in terms of recruiting and educating our staff and we will also ensure that we maintain a well-educated and well-qualified staff,” he said.
On a more personal level, Antonakes said he owes his qualifications and education in the bank regulatory field and to Curry, with whom he worked for nine years. “I couldn’t think of a better training ground,” he said.
Antonakes said he is ready to tackle any challenges and looking forward to continuing the relationship he has with his staff and members of the banking industry in the upcoming year. But, he said, while the short-term agenda is full, developing a long-term plan of action for the agency under his stewardship will take time.
“I’m truly honored and in many ways humbled by the opportunity to lead the agency – it’s an honor, and we have a proud history,” said Antonakes. “I look forward to the challenge and I’m lucky to have a great group of people here who are interested in providing for the better good and protecting the citizens of the commonwealth.”
