Post Ben: Revisit the Concept

Too bad that the news of Ben Lawsky’s departure from the NYDFS was greeted in the major papers almost universally with a recounting of his hard-hitting penalties and pun- ishments of bankers. It has made him appear a bit of an over-reacher in the prosecution of errant bank operatives, when in fact he meted out many a just fine, although some were unduly harsh in our view. Problem we have is that insurance seemed to take a second place to the banking agenda, from reported problems in communica- tions and responsiveness to problems of seeming indifference – not our words, by the way, but those of a top former regu- lator. Now, we feel that Ben Lawsky’s exit as the first leader of the consol- idated DFS offers the Governor the chance to revisit the unification of the two financial industries and consider their separation. Insurers would prefer it, so we are told. Lawsky’s tenure was highlighted by his com- mand performance after Super Storm Sandy hit New York. He went again and again out to the devastated areas on LI and in the boroughs and took his staff with him to find ways to get monies to needy residents. For that alone, we praise his work ethic and dedication. We also hold that he gave the State’s residents good service, not being afraid to regulate or to take on all comers.  He will depart the Department in late-June after four years serving as superintendent. In a press release, Superintendent Lawsky said: “I am deeply proud of the work our team has done build- ing this new agency and helping stre ngthen oversight of the financial markets. We have assembled a great team at NYDFS and I have full confidence that the critical work of this agency will continue seamlessly moving forward. I also want to thank Governor Cuomo for the trust he showed in appointing me to this position and for providing us with the opportunity to serve the people of New York. On a personal level, I am deeply grateful to the Governor, who has been an incredible men- tor and amazing friend to me over the past eight years.” Supt Lawsky will form his own firm to advise clients on Bit Coins, on transactions in the highly regulated industries he served, and the like. The Insurance Advocate wishes Ben Lawsky Godspeed in his next career steps and thanks him for his care and service.