Fed's Barr Sees Community Bank Threat in Big Bank Deregulation

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Transcript

00:00As community bankers well know, it was not community banks that fueled the 2008 financial crisis.

00:06It was the largest, most complex firms whose excessive risk-taking nearly brought down the system.

00:12In the years since, strong reforms, higher capital, tougher liquidity requirements,

00:18and rigorous stress testing have helped to safeguard our economy. Yet recent proposed

00:23rollbacks in capital standards for the largest banks in the supervisory framework for large banks

00:30and in the rigor of stress testing for large banks threaten to erode those protections.

00:36These shifts would not make the system safer. They would leave community banks once again exposed

00:41to the fallout if the largest players stumble. Because we cannot afford to repeat those mistakes,

00:48I have spoken out against weakening standards for large banks, and I will continue to do so.