Yellen Picks Michael Hsu As First Deputy Comptroller Of OCC

U.S. Treasury Secretary Janet L. Yellen plans to name Michael J. Hsu the first deputy comptroller of the Office of the Comptroller of the Currency, her office announced.

Hsu is scheduled to assume the position on Monday (May 10) in an acting capacity. The position requires a formal presidential appointment and Senate approval. Some published reports suggested that the Biden administration has yet to determine who should fill the role long-term.

“Mike has devoted his career to the stability and supervision of America’s banking system. He is among the most talented and principled regulatory officials that I have had the pleasure of working with, and I am confident he will execute this role with integrity and efficiency,” Yellen said in a prepared statement.

In his new capacity, Hsu will play a major role in overseeing the company’s banks, similar to his current work in the Federal Reserve System. He will replace Blake Paulson at the Office of the Comptroller of the Currency (OCC).

The OCC, an independent bureau within the Treasury Department, oversees the national banking operations of major Wall Street investment banks.

Reuters reported that Democrats have sparred over who should get the OCC appointment, as whoever holds it will have the power to influence policies around wealth disparities.

Reporting on the imminent appointment, the Financial Times wrote: “He has emerged as a more technocratic choice to lead the OCC compared with other possible choices with higher political profiles, such as Michael Barr, a professor at the University of Michigan and former Treasury official under Barack Obama, who was a leading contender for the job.”

Various news organizations reported that some liberal Democrats wanted the post to go to Mehrsa Baradaran, a professor at the University of California at Irvine.