The OCC’s Michael Hsu on the Big Risks Facing Banking Businesses Right Now | Odd Lots

Earlier this year, we saw the collapse of Silicon Valley Bank and Silvergate Bank following a run on deposits and big losses on their portfolios of bonds. Since then, regulators have been discussing changes to existing bank regulation, prompting existential questions about the future of the US lending landscape. But there are other risks lurking in the banking system too — including those created by new technology and changing business models. In this episode, recorded live at Money 20/20 in Las Vegas, we speak with Michael Hsu, the acting comptroller of the Office of the Comptroller of the Currency. He talks about banking regulation, crypto contagion, the rise of banking-as-a-service (BaaS) and the supply chain of payments.

Intro -- 00:00

The different US banking regulators — 5:05

The OCC’s view of stablecoins — 9:02

Crypto contagion to banks — 11:35

OCC interest in tokenization — 12:59

Guidance on third-party relationships — 18:05

The risks of third-party vendors — 22:21

The ideal structure of the US banking system— 27:46

Merger guidance post-SVB — 29:36

Could we have a Bank of Apple? — 30:39

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Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Monday and Thursday for interviews with the most interesting minds in finance, economics and markets.

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