NEW YORK, April 7 The United States should
consider limited adjustments to the landmark financial reforms
adopted following the financial crisis, including the so-called
Volcker Rule, the "stress tests" of large firms and unnecessary
burdens on small banks, a key Federal Reserve official said on
New York Fed President William Dudley, echoing many
recommendations of former Fed Governor Daniel Tarullo, who
stepped down this week, also pushed back on Republican critics
of the U.S. central bank's participation in global Basel
meetings meant to coordinate financial regulations.
"It is entirely appropriate to take a critical look at the
changes that were made to the regulatory regime," Dudley, whose
New York branch serves as the Fed's eyes and ears on Wall
Street, told the Princeton Club of New York.
"While we do not yet have evidence of how these reforms will
hold up during the next economic downturn, many have been in
place long enough that we can begin to evaluate their efficacy,"
he said of the 2010 Dodd-Frank law that toughened rules and
oversight for financial institutions that exacerbated the
(Reporting by Jonathan Spicer; Editing by Meredith Mazzilli)