The head of the New York State Department of Financial Services will resign from her post later this month, the latest fallout from the sexual harassment scandal that toppled Gov. Andrew Cuomo.
NYDFS Superintendent Linda Lacewell announced in an emailed letter to the agency’s staff that she would depart Aug. 24, which is the same day Cuomo plans to leave. Lt. Gov. Kathy Hochul will become governor.
“It has been a privilege to lead you over the past two and a half years. With a new governor about to take office, it is time for me to move on and make way for new leadership,” Lacewell said in the letter.
Cuomo's announcement that he will resign followed an investigation from the New York attorney general that found the third-term governor had sexually harassed 11 women and had created a toxic work environment.
NYDFS Superintendent Linda Lacewell announced in an emailed letter to the agency’s staff that she would depart Aug. 24, which is the same day Cuomo plans to leave.
Lacewell’s name appears more than 30 times in the 168-page investigative report released by the New York attorney general’s office earlier this month. An aide and advisor to the New York governor, Lacewell worked with other Cuomo allies to develop a public relations strategy as allegations gained traction in the media, including by collecting signatures for a letter of support for the governor, according to the report.
As head of the NYDFS, Lacewell battled the Office of the Comptroller of the Currency in court over the federal agency’s narrow-purpose fintech charter, which state authorities have argued would undercut states’ ability to enforce interest rate caps and other consumer protections not found at the federal level.
Under Lacewell, the NYDFS also became the first financial regulator in the U.S. to issue climate guidance for banks and other financial institutions. The state agency also joined the Network for Greening the Financial System in September 2019, more than a year before the Federal Reserve would join the international group.
Backed by tech billionaires, the crypto-focused digital startup bank's timely application reflects the current administration's openness to new tech-driven banking models — and raises concerns about regulatory impartiality, considering its backers' political ties.
The application follows on the heels of Circle and Wise, as crypto and payment companies seek crypto custody approval and direct access to the Federal Reserve payment system.
The credit union regulator, responding to a recent executive order, has established strict new standards for prosecuting financial crimes. Regulators are now supposed to make criminal referrals only in cases where putative defendants appear to have known they were breaking the law.
Three bank trade associations recommended phasing out paper checks to reduce government payment fraud in a joint statement submitted to the U.S. Treasury.
Baton Rouge-based Investar Holding Corp. has agreed to pay $84 million for Wichita Falls Bancshares, which operates five branches in the Dallas-Fort Worth Metroplex.
