Archegos Blowup Signals Bank Complacency, Top Regulator Says
- Failure shows need for more vigilance, acting OCC chief says
- Agency releases risk report that also flags climate change
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Archegos Capital Management’s implosion signals Wall Street has grown too complacent about potential threats building up in the economy, said Michael Hsu, the new acting chief of the Office of the Comptroller of the Currency.
“Banks do deserve credit for having weathered the pandemic fairly well,” Hsu, who Treasury Secretary Janet Yellen installed at the OCC this month, told reporters Tuesday. “There is a risk of a bit of overconfidence from that, to think that because everyone has done so well, they’re going to do well at everything as we enter a kind of growth phase.”