(Repeats to widen distribution)
NEW YORK Dec 3 The United States "absolutely
must" complete unfinished work ending the too-big-to-fail bank
problem that helped plunge the global economy into recession
eight years ago, an influential Federal Reserve policymaker said
In remarks that appeared to pre-empt President-elect Donald
Trump, who has promised to roll back Wall Street regulations,
New York Fed President William Dudley said much progress has
been made making the financial system "less prone to panics."
"Still," he said in prepared remarks, "there is more to do
before we can say that we have ended 'too big to fail.' This is
work that we absolutely must complete."
Dudley's comments, to a Group of 30 meeting of top world
regulators, came a day after another powerful regulator at the
U.S. central bank, Daniel Tarullo, also warned against
"backsliding" after years of implementing the landmark 2010
Dodd-Frank financial-reform law.
Challenges especially remain in regulators safely and
smoothly handling the hypothetical failure of a massive bank
with operations in multiple jurisdictions, Dudley said.
Addressing other areas of the financial landscape, Dudley,
whose institution acts as the Fed's eyes and ears on Wall
Street, drew a line around these areas he said provided
important structure changes: reforms in tri-party reverse
repurchase market; in over-the-counter derivatives and the
central clearinghouses that handle that activity; and in money
market mutual funds.
Trump, a Republican whose victory last month shocked
pollsters, has said his administration will grow the economy in
part by rolling back elements of the Dodd-Frank Wall Street
(Reporting by Jonathan Spicer; Editing by Alistair Bell)