Hsu’s Tenure Policing Banks Guided by Examiner’s Eye, Risk Focus

A key federal banking regulator preparing for President-elect Donald Trump to take office says his dogged focus on risk management helped banks navigate a series of market disruptions during the Biden administration.

Banks were ready to open the lending spigots when acting Comptroller of the Currency Michael Hsu took office in May 2021, as Covid-19 death rates started to drop and Americans’ bank accounts swelled with pandemic-era stimulus money. But Hsu, a veteran of the 2008 financial crisis, warned banks and his examination team to remain on guard.

“Guarding against complacency is in some ways the hardest to talk about,” ...