Prominent corporate lawyer H. Rodgin Cohen said Friday that he sees the environment between banks and their regulators as one of the most tension-filled times of his career.
"We have a debate about ... how the regulatory regime should be implemented in the examination process," he told CNBC's "Squawk on the Street." "Should it be done with confrontation and suspicion or should it be done with healthy skepticism and independence?"
Cohen, who is senior chairman of New York-based law firm Sullivan & Cromwell, said that it is a myth that banks have cozied up to regulators to avoid a true independent examination process. He adds that fiction is "driving the interaction between the regulators and the banks."
"I am relatively confident that what we saw in the past is not going on today," he said. "Banks have put an enormous amount of resources into improving culture and compliance."