Former OCC chief on the sting of peeling the Basel III ‘onion’
Michael Hsu warns successors not to cut bank capital or neglect rate risks that destroyed SVB
When Michael Hsu was tapped to serve as acting head of the Office of the Comptroller of the Currency (OCC) in May 2021, the world looked very different.
The US economy was roaring back from Covid, fintechs were booming and crypto was careening into mainstream conversation. Over the next three years, this post-pandemic exuberance gave way to a more sobering reality – persistent inflation, a sharp rate-hike cycle and the slow unwinding of speculative excess.
If one were to backtest Hsu’s time in
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