NU Online News Service, Oct. 3, 2:10 p.m.EDT

New York's new Superintendent of Financial Services Benjamin M.Lawsky announces the launch of the state's Department of FinancialServices, which merges the insurance and banking departments.

The plan to merge the departments was finalized in March when the state passed its budget. At thattime, the state said the department would oversee any financialproduct, service or entity that isn't already clearly regulated byanother New York agency.

Today, Lawsky says the new department says it will consist offive divisions:

The Insurance Division will carry on the core functions ofregulating all insurance activities in New York, including life,property and health insurance.

The Banking Division will continue regulating state charteredbanks, along with other financial services providers such asmortgage servicers and originators, check cashers, moneytransmitters and budget planners.

The Financial Frauds and Consumer Protection Division willprotect and educate consumers of financial products and servicesand fight financial fraud.

The Real Estate Finance Division will focus on all aspects ofthe mortgage industry "to ensure that the lessons from the recentfinancial crisis are learned and new reforms are instituted."

The Capital Markets Division will actively monitor the latestdevelopments and products and help the Department better policesystemic risk.

Lawsky, who was confirmed as the department's first superintendent in May,says, "The Department of Financial Services has three main goals:keeping New York on the cutting edge as the financial capital ofthe world, protecting consumers better than ever before, andserving as a model of efficient government."

In May, along with the confirmation of Lawsky, it was announcedthat James J. Wrynn, who was the superintendent of insurance priorto the merger, was named deputy superintendent of the newdepartment.