News | 05.14.19
Former Top Financial Regulators Warn Against Move to Ease Oversight of Firms
Two former Treasury secretaries joined two former Federal Reserve leaders on Monday to warn that the Trump administration's efforts to relax oversight of certain financial firms could threaten the stability of the U.S. financial system. The warning comes two months after the Financial Stability Oversight Council said it planned to stop designating large, non-bank financial institutions like asset managers as “systemically important” and placing them under stricter federal oversight, a process that was put in place after the 2008 financial crisis. Regulators who dealt with the aftermath of the crisis fear that dropping the designation could be a grave mistake. On Monday, former Treasury secretaries Jacob J. Lew and Timothy F. Geithner and former Fed leaders Ben S. Bernanke and Janet L. Yellen urged their successors, Steven Mnuchin, the Treasury secretary, and Jerome H. Powell, the Fed chairman, to rethink the plan.
Read the full article on New York Times