Fed Governor Powell: Dodd-Frank Should be Reviewed, “Core Reforms” Protected

The Financial Times reports that Federal Reserve Governor Jerome Powell recently stated that Dodd-Frank should be reviewed, but that the “core reforms” should be protected. Speaking at the Global Finance Forum in Washington last Thursday, Governor Powell stressed that the main features of the post-crisis rulebook such as higher liquidity requirements, enhanced capital standards, and stress testing should be “protected to avoid a return to the highly vulnerable system that existed before the crisis”. However, the article writes that Governor Powell acknowledged that some measures were “excessively complex, and in too many cases… inappropriately applied to small and medium-sized institutions.”

SFIG advocates for clarity and certainty in the face of regulatory and legal complexity, and believes that the current aspects of the current regime produces unintended consequences, including a lack of liquidity, higher costs, and misaligned incentives. We will continue to work with market participants and members across all asset classes to drive constructive legislative and regulatory reform.

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