You are here:HomeNews CenterInsurance News2009Putting Financial Firms Under State Supervision Builds Confidence, NY Regulator Says

Putting Financial Firms Under State Supervision Builds Confidence, NY Regulator Says

The conversion of financial institutions to bank holding companies regulated by state supervisors boosts confidence in the institutions because of greater regulatory oversight and standards,...
March 10, 2009

The conversion of financial institutions to bank holding companies regulated by state supervisors boosts confidence in the institutions because of greater regulatory oversight and standards, according to New York State Banking Department Superintendent Richard H. Neiman. In prepared remarks for delivery March 2 at the Institute of International Bankers' annual Washington conference, Neiman said developments in many banks he oversees hint at significant shifts evident in today's banking sector. The move by some financial services firms, such Goldman Sachs, to become bank holding companies regulated by his department will provide financial markets with greater confidence in the firm, he said in his remarks.

"Conversion offers access to more stable funding from deposits and a regulatory regime with higher capital requirements, lower leverage, and continual on-site supervision…. What we are doing in New York is working to help restore market confidence," said Neiman.