New York's top banking regulator Benjamin Lawsky, who used his leverage to stiffen penalties against some of the world's largest financial institutions, will probably step down next year to take a job in the private sector, said a person familiar with the matter.

Lawsky, 44, was appointed by Governor Andrew Cuomo to head the newly formed Department of Financial Services in 2011, with a mandate to regulate state-licensed banks and insurance companies. He became widely known the following year for threatening to revoke Standard Chartered (STAN) Plc's license to operate in New York after growing frustrated with the slow pace of settlement talks over sanctions violations.

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