OTC MARKET NEWS Powered By Quantifi

Jeb Bush says U.S. bank rules may have contributed to systemic risks 

June 10, 2015

Michael Nienaber, Emily Stephenson, Reuters

Likely Republican presidential candidate Jeb Bush on Tuesday criticized the 2010 Dodd-Frank Wall Street oversight law, saying it did not stop banks from becoming "too big to fail" and may have contributed to new risks in the U.S. financial system.

Bush, the former governor of Florida, is expected to formally launch his bid for the White House on June 15, after he completes a five-day European trip.

Speaking in Berlin on Tuesday, Bush said reforms enacted in response to the 2007-2009 economic meltdown led to bigger banks and may have heightened risk in the U.S. financial system.

"We have more banks with more concentrated assets in the United States, and the systematic risk is perhaps greater now than it was when the law was signed," Bush said.

"And so I would beware of regulations in general. I think they need to be thoughtful," he said.

During the crisis, the biggest banks received government bailouts because regulators worried they were so big it would threaten financial market stability if they went under, a concept that came to be known as "too big to fail."

Read more: Reuters

Comments are closed on this post.


Submit your email to receive our newsletter