financetom
Economy
financetom
/
Economy
/
Yellen to call for more financial stability work, thoughtful regulation
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Yellen to call for more financial stability work, thoughtful regulation
Sep 29, 2024 5:09 PM

(Reuters) - U.S. Treasury Secretary Janet Yellen will call for continued work to ensure a resilient financial system, including pursuing thoughtful regulation and pushing back against those who want to roll back bank capital requirements.

Yellen, in excerpts of remarks to be delivered at a Treasury markets conference in New York, said reforms instituted after the 2007-2009 financial crisis have helped the system weather turbulence including the pandemic and more recent regional bank difficulties.

"Work to build and maintain a resilient financial system is never over. We'll never be able to just declare victory," Yellen said in the remarks to the conference hosted by the Federal Reserve Bank of New York.

"A resilient financial system is critical to a strong economy. And strengthening it requires insisting on thoughtful regulation, including in the face of challenges from those who advocate to roll back policies and regulations," she added.

Yellen said that when she took office in January 2021, she worked to rebuild the government's focus on financial stability to ensure a system that could serve households and businesses and support prosperity.

This included a focus on safe and sound financial institutions, financial market utilities, central clearing counterparties and protections for investors and consumers.

This framework helped enable Treasury to take steps to protect the banking system from contagion in the spring of 2023 after the failure of Silicon Valley Bank and Signature Bank, Yellen said.

"At home, there were some who strongly opposed the Dodd-Frank Act, arguing that its regulation would hold back innovation and economic growth," Yellen said, referring to the 2010 financial reform law. "I and many others have insisted on the opposite. Appropriate regulation is critical to supporting a resilient financial system that serves as an engine for innovation and growth."

Warnings that Dodd Frank would leave the U.S. banking sector uncompetitive failed to be realized while higher-quality capital required by the law allowed banks to extend credit to households and businesses that needed it during the pandemic, Yellen said.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US core capital goods orders rise; higher borrowing costs a constraint
US core capital goods orders rise; higher borrowing costs a constraint
May 24, 2024
WASHINGTON (Reuters) - New orders for key U.S.-manufactured capital goods rebounded more than expected in April and shipments of those goods also increased, suggesting a modest improvement in business spending on equipment early in the second quarter. Nonetheless, business investment on equipment continues to be hamstrung by higher borrowing costs. That, together with a strong dollar and weak global demand,...
US Dollar Remains Under Pressure After Durable Goods Orders Surprise Stronger
US Dollar Remains Under Pressure After Durable Goods Orders Surprise Stronger
May 24, 2024
09:00 AM EDT, 05/24/2024 (MT Newswires) -- The US dollar remained under pressure near session lows against major currencies like the euro and pound while pushing higher against the Japanese yen and Swiss franc after durable goods orders came in stronger than expected for April. EUR/USD climbed to new intraday highs above 1.0840 and GBP/USD remained buoyant near session highs...
US core capital goods orders rise; higher borrowing costs a constraint
US core capital goods orders rise; higher borrowing costs a constraint
May 24, 2024
WASHINGTON (Reuters) - New orders for key U.S.-manufactured capital goods rebounded more than expected in April and shipments of those goods also increased, suggesting a modest improvement in business spending on equipment early in the second quarter. Nonetheless, business investment on equipment continues to be hamstrung by higher borrowing costs. That, together with a strong dollar and weak global demand,...
Fed's Waller points to forces that may lift future underlying interest rates
Fed's Waller points to forces that may lift future underlying interest rates
May 24, 2024
(Reuters) - Federal Reserve Governor Christopher Waller said on Friday it's possible that a key underlying interest rate may rise in the future after years of declines, but it's too soon to say if that will happen. There has been a lot of debate during the past year as to whether or not 'R-star' has increased, Waller said in the...
Copyright 2023-2026 - www.financetom.com All Rights Reserved