Benjamin Lawsky, the New York state banking regulator who earned praise and enmity for his persistent pursuit of Wall Street wrongdoing, will leave the Department of Financial Services in June, The Wall Street Journal reported on Wednesday. He had been interviewing for private-sector positions for months and was expected to leave this spring but instead of heading to an established law firm or financial consultancy, he is striking out on his own. Lawsky will be starting his own consulting and legal firm. In 2011, he was appointed to lead the newly formed Department of Financial Services, which combined two long-existing agencies. He has carved out a robust bailiwick for the new agency, which regulates state-licensed financial institutions and insurers. Lawsky, who oversaw any bank chartered in New York, earned a reputation as a brawler during his four-year tenure, consistently pushing for larger fines and tougher sanctions. The effort drew plaudits from those who found other banking regulators lacking and criticism from the banks and their lawyers and consultants.
