By Andrew R. Johnson 

New York's top banking regulator on Tuesday defended the agency's decision not to strip Credit Suisse Group AG's banking license, noting the bank's tax-evasion settlement included a "substantial" fine and other penalties.

Benjamin Lawsky, superintendent of the New York Department of Financial Services, also said that deciding whether to terminate senior executives of firms accused of misconduct should be reviewed on a case-by-case basis.

"You don't just say, 'Well you were upper management, off with your head, '" Mr. Lawsky said to reporters on the sidelines of a Mortgage Bankers Association conference in New York. "I think it has to be a careful analysis when you're talking about individuals and their lives and their careers."

The comments come a day after Credit Suisse agreed to plead guilty to a federal criminal charge that it conspired to help wealthy Americans evade taxes. It also agreed to pay $2.6 billion, including $715 million to the New York banking regulator.

Credit Suisse Chief Executive Brady Dougan isn't expected to lose his job over the case despite calls by some in Switzerland for him to leave the firm, The Wall Street Journal reported Monday.

Mr. Lawsky declined to comment on whether his agency sought Mr. Dougan's removal as part of any settlement.

It is appropriate to ask if senior executives are being held accountable when their firms engage in misconduct, Mr. Lawsky said, adding that it is also "important that there be some stability at the firm [Credit Suisse] as they get through this period."

Mr. Dougan became CEO of Credit Suisse in 2007. Mr. Lawsky noted the executive's appointment "was at the very, very tail end of the bad conduct," which regulators said went on for decades.

Credit Suisse became the first financial institution to plead guilty to criminal charges in more than a decade. In several recent large-scale settlements with banks, federal prosecutors have allowed banks to enter so-called deferred prosecution agreements. Such deals have allowed banks to avoid facing criminal charges while agreeing to take steps to rectify behavior in question over a period of time.

Legal experts are analyzing how much the potential fallout of Credit Suisse's deal will ultimately differ from those in which banks have entered a deferred-prosecution agreement, since Credit Suisse was able to avoid being shut down by regulators.

"This is something new," Mr. Lawsky said, adding that "clearly a guilty plea is different." In a deferred-prosecution agreement, "you don't have that stigma, you don't have that actual legal action."

"I think it will take a little time for this to play out and we'll see how much different it is and what it means for the firms' investors and the firms' clients and the firms' counterparties," he said. "I think most people want to see a stable banking system but we also want to see...appropriate penalties, especially when there's intentional criminal conduct that took place."

Mr. Lawsky declined to discuss the specific negotiations that led to the decision to not revoke Credit Suisse's state license, a decision that could have crippled the firm's ability to operate in the U.S.

Mr. Lawsky has indicated to prosecutors overseeing a separate investigation of BNP Paribas SA that he wouldn't seek to revoke the French bank's New York license as long as other penalties are included in any settlement, a person familiar with the matter has said. In that case, BNP could also plead guilty to criminal charges related to violations of U.S. sanctions against countries such as Iran and Sudan, the Journal has previously reported.

That situation is "entirely different" from the Credit Suisse case given the conduct in question, Mr. Lawsky said.

In addition to the $715 million fine--the largest ever for the New York Department of Financial Services since its formation in 2011--Credit Suisse also agreed to operate under a monitor that will be selected by the banking agency. It also agreed to terminate three managers who were indicted by U.S. prosecutors in 2011 but continued to be paid by the bank.

Selection of the monitor, which will review the bank's corporate-governance policies, actions taken by employees and other factors, could take a few weeks, said Mr. Lawsky. The monitor will be selected by his agency, though Mr. Lawsky said he is recused from the process.

Write to Andrew R. Johnson at andrew.johnson@wsj.com

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