Fischer, a former official of the
That next crisis "will not be identical to the last one," and regulators have to work both to foresee it and to prevent it, Fischer said in his speech to a conference of the
Progress has been made in the U.S. toward reducing the chances of future big-bank failures by regulators raising capital requirements for banks and subjecting them to periodic "stress tests," Fischer told the private research organization.
Breaking up the biggest banks "would be a very complex task, with uncertain payoff," he said. He noted that
Yellen said in April that the largest U.S. banks may need to hold additional capital to withstand periods of financial stress. Non-banks with deep reaches into the financial system might also need to meet tougher rules, she said. Such firms range from money market mutual funds to private equity and hedge funds.
At the same time, Yellen said the Fed would review the likely effects of imposing stricter rules on banks. Banks and their advocates have warned that further tightening bank regulation would lead to reduced lending to businesses and could slow economic growth.
Last week, Yellen said she doesn't see a need for the Fed to start raising interest rates to defuse the risk that extremely low rates could destabilize the financial system.
Most Popular Stories
- GE Healthcare Bringing Jobs to Massachusetts
- Faith Groups Divest From Fossil Fuels
- Hispanic NASCAR Driver Ready to Make History
- James Foley Killer Could Be ID'd Via Social Media, Voice Recognition
- James Foley Beheading Video Is Real Thing: White House
- Apple Stock Bounces Back Big Time
- Bank of America Agrees to Pay Record $16.65 Billion
- U.S. Existing Home Sales Rise 4th Month Straight
- Entrepreneur Contest Announced in Idaho
- Family Dollar Will Stick With Dollar Tree