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Focus on bad bankers, not just their banks, New York's Lawsky says

Apr 30 2014 Stuart Gittleman, Compliance Complete

Banks don't do bad things – people do – so the people behind the alleged violations should face more regulatory scrutiny and personal accountability, Benjamin Lawsky, Superintendent of the New York State Department of Financial Services, said Tuesday. Focusing on individuals could better deter misconduct , and could also stop sending signals that the bank where the individuals worked – and the banking industry overall – are bad, Lawsky told reporters at a Reuters financial services regulatory summit in Manhattan. The penalties against individuals need not be severe in every case, Lawsky added. A loss and claw-back of bonuses and compensation can be as appropriate as suspension and discharge in certain cases, with the goal being to "hopefully change conduct going forward," he said. In his appearance at Reuters, Lawsky ran down a list of priorities for his department, which was created in 2011 in a merger of the state's banking and insurance regulators. With five divisions – banking,

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