Fed's Kashkari, in first speech, suggests radical Wall St. overhaul WASHINGTON | BY LINDSAY DUNSMUIR AND JASON LANGE http://www.reuters.com/article/us-usa-fed-kashkari-idUSKCN0VP1Y4
The U.S. Federal Reserve's newest policymaker and a former point man for the government's bailout of the financial industry on Tuesday called on lawmakers to take radical action to rein in banks and protect taxpayers. In his first speech as head of the Minneapolis Fed, Neel Kashkari, a Goldman Sachs executive before he worked at the U.S. Treasury, urged Congress to consider "bold, transformational" rules including the breaking up of the nation's largest banks to avoid bailouts. Kashkari indicated that his work at Treasury, where he managed a key part of the banking and auto industry bailouts during the financial crisis of 2007-2009, helped inform his current view. A set of regulations introduced since the crisis, known as Dodd-Frank, did not go far enough, he said in prepared remarks that straddled the line between the Fed's policymaking remit and political advocacy. "Now is the right time for Congress to consider going further than Dodd-Frank with bold, transformational solutions to solve this problem once and for all," Kashkari said, arguing that the biggest banks are still too big to fail and continue to pose a significant, ongoing risk to the U.S. economy. [...] === Robert Naiman Policy Director Just Foreign Policy www.justforeignpolicy.org [email protected] (202) 448-2898 x1
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