FDIC Chief Warns Over Relaxed Banking Regs

From: PYMNTS.com

Martin Gruenberg, the chairman of the Federal Deposit Insurance Corporation who is leaving the government agency, expressed concern that regulators may be doing too much to roll back rules that were put in place after the Great Recession and financial crisis.

According to a news report in Reuters, citing comments Gruenberg made at a forum on regulation and markets, he believes the existing rules have made the country’s banking industry safer without impacting the profitability of U.S. financial institutions. “The danger is that changes to regulations could cross the line into substantial weakening of requirements,” the government official said. “Let’s be clear: Our largest banking organizations are not voluntarily holding the enhanced capital and liquid asset cushions required by current rules.”

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