Ben Lawsky v. BNP Paribas
Who is Ben Lawsky and how does he have the power to push around BNP Paribas, France's largest bank?
Lawsky is the first Superintendent of Financial Services for New York. In that position, he is the supervisor of the "majority of United States-based branches and agencies of foreign banking institutions." He also has jurisdiction over all New York state-chartered depistory insitutions. In short, he has a big stick.
Following up on yesterday's post, it is now becoming clear that Lawsky is taking some big swings at BNP. According to the New York Times, Lawsky insisting that BNP sever ties with more than a dozen employees, including its COO - Georges Chodron de Courcel. Lawsky similarly insisted that Credit Suisse sever ties with all employees who were subject to indictment in the United States.
Lawsky was appointed by Governor Andrew Cuomo to be the first head of the newly-created Department of Financial Services. He is as close to Cuomo as anyone. During Cuomo's first years as Governor, Lawsky served as his chief of staff. When Cuomo was New York's Attorney General, Lawsky was part of Cuomo's inner circle.
Many years ago, I had he good fortune to socially meet Lawsky. He is the guy that Elliot Spitzer pretended to be. He is smart, humble and well-grounded. You could not get a razor between Lawsky and his principles.
The financial world is learning that Lawsky is force to be reckoned with. There's a new sheriff in town.