FDIC Chair Warns Against Weakening Dodd-Frank Requirements

FDIC Chair Martin J. Gruenberg warned against making significant changes to Dodd-Frank reforms and discussed the benefits of post-crisis regulation.

In remarks at the Brookings Institute in Washington, D.C., Chair Gruenberg outlined the extensive post-crisis reforms instituted by banking regulators to address, among other issues, risk-based and leverage capital, liquidity, proprietary trading, margin for non-cleared swaps, and the regulation of systemically important financial institutions ("SIFIs"). He asserted that these reforms address the significant risks (such as excessive use of leverage, inadequate liquidity, and the securitization of large amounts of poorly underwritten mortgages backed by an "opaque network of credit derivatives") that weren't accounted for prior to the crisis.