Fed’s Dudley Warns Against Overly Aggressive Regulation Roll Back
When it comes to change, Mr. Dudley said alterations of existing laws and regulations should be done with a “paring knife, rather than with a meat cleaver.” Maintaining higher capital and liquidity requirements for too-big-to-fail banks remains critical, he said.
Central clearing for derivatives securities should also be retained, and a continuing role for the Fed as an important regulator remains critical. Mr. Dudley also wants the Financial Stability Oversight Council to keep its ability to name nonfinancial firms as systemically important and eligible for increased government oversight.
.. the Volcker rule, which limits certain types of trading for banks, should get a “less burdensome” implementation.