Lew: ‘Much Work Still Remains’ on Financial Regulation Overhaul

From: Wall Street Journal

WASHINGTON–U.S. regulators have made gains in reducing the risks posed by the financial system but “much work still remains” as policymakers seek to tighten oversight four-plus years after the financial crisis, Treasury Secretary Jacob Lew said Thursday.

Mr. Lew, speaking at a meeting of the panel of regulators known as the Financial Stability Oversight Council, laid out a number of areas where officials need to focus, including further strengthening markets susceptible to runs, attracting private capital to the housing finance system, and monitoring operational risks such as cyber attacks.

“We have made important strides over the last year, and our financial system is stronger. But as everyone here knows, much work still remains,” Mr. Lew said in prepared remarks.

The FSOC, which is primarily made up of regulators from all the major federal financial regulatory agencies, was meeting Thursday to approve their annual report. The panel meets regularly to discuss potential risks to the financial system, evaluate which firms could potentially pose a systemic risk to the economy, and to coordinate on regulation.

Mr. Lew also suggested that U.S. officials need to reach out to their foreign counterparts to address issues raised by the scandal surrounding manipulation of the LIBOR benchmark rate. International regulators should “consider transitions toward alternative benchmarks,” he said.

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