A little-known bank regulator from a newly formed New York agency might just shame federal regulators into getting tougher with the banks. Or he should, anyway.
The Wall Street Journal reported on Thursday that federal regulators are in talks with the New York State Department of Financial Services about negotiating a deal with British bank Standard Chartered, which has been accused of letting Iranian interests launder $250 billion over a course of years, in violation of U.S. sanctions.
This was an intriguing development in the case, because for the past 48 hours or so, these same federal regulators have been beside themselves with fury at the guy in charge of that same New York State Department of Financial Services, Benjamin Lawsky.
Now they're talking about joining forces with him. It's almost enough to make you hope that, if there is a penalty coming, it will be more than the usual wrist-slap.