Fed Reserve vice chair calls plans to unwind banking rules “very, very dangerous”

Financial Times reports:

One of the Federal Reserve’s top policymakers has attacked attempts to reverse the post-crisis drive for tougher regulation, calling efforts to loosen constraints on banks “dangerous and extremely short-sighted”.

Stanley Fischer, the vice-chairman of the Fed’s board of governors, said in an interview with the Financial Times that 10 years after the crisis there are troubling signs of a drive to return to the status quo that preceded it. While he endorsed efforts to ease up on small banks, he said political pressure in Washington to curtail regulatory burdens on large institutions was very hazardous.

Mr Fischer said: “It took almost 80 years after 1930 to have another financial crisis that could have been of that magnitude. And now after 10 years everybody wants to go back to a status quo before the great financial crisis. And I find that really, extremely dangerous and extremely short-sighted.

The full article is here.

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