Declining revenues and staff led the OTS to market itself to companies as a lax regulator in order to get revenue.
The OTS also expanded its oversight to companies that were not banks.
These constituted some of the largest financial failures in modern history to that point.
Some of the companies that failed under OTS supervision during the financial crisis of 2007–2010 include American International Group (AIG), Washington Mutual, and Indy Mac.
The OTS was implicated in a backdating scandal regarding the balance sheet of Indy Mac.
The Office of Thrift Supervision (OTS) was a United States federal agency under the Department of the Treasury that chartered, supervised, and regulated all federally chartered and state-chartered savings banks and savings and loans associations. federal bank regulators, it was paid by the banks it regulated.
It was created in 1989 as a renamed version of another federal agency (that was faulted for its role in the savings and loan crisis). The OTS was initially seen as an aggressive regulator, but was later lax.