Comptroller of the Currency John Dugan said he will step down Aug. 14 after nearly completing his five-year term as the top supervisor of national banks.

In his letter to President Obama, the 29th Comptroller of the Currency noted that only 42 national banks have failed since the beginning of the financial crisis in 2008 although many of the largest national banks received "extraordinary government assistance to survive or stabilize."

Today, credit losses remain elevated, but profitability, capital ratios and loan loss reserve levels have improved, he said. However, problems with the commercial real estate sector "continue to pose significant challenges" for community banks.

During his tenure, Dugan pushed Office of the Comptroller of the Currency's agenda of preempting state laws and regulations to extreme. But the Supreme Court recognized that state attorneys general have in certain instances the right to intervene and protect national bank customers from abuses.

The Dodd-Frank Wall Street Reform bill that appears to be near final passage also trims OCC's preemptive powers.

The original Wall Street Reform bill passed by the House contained a provision that terminated Dugan's term as Comptroller on the date the president signed the bill.

That provision has been removed from the final bill that is currently pending in the Senate. Dugan's resignation was expected by the industry.

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