US Bank Watchdog Laments Threat From ‘Too Big to Manage’ Lenders

A top US bank regulator wants a more streamlined approach for handling large, complex lenders that fail to fix problems flagged by the government.

Michael Hsu, the acting comptroller of the currency, said on Tuesday that more clarity and transparency is needed in the process for dealing with massive banks that fail to fix issues. He said that more needs to be done to avoid and deal with “too big to manage,” or TBTM, situations that come about when organizations become exceedingly large and complex.

Michael Hsu, acting director of the Office of the Comptroller of the Currency

Photographer: Ting Shen/Bloomberg

“I have seen up close what happens when large banks become unmanageable and ...