Fed's Plosser: need higher capital requirements
PHILADELPHIA (Reuters) - Government oversight of the financial system should be designed to make market participants more cautious about risks, Philadelphia Federal Reserve Bank President Charles Plosser said on Wednesday.
"This requires scaling back some of the safety net subsidies that have risen over the years and increasing capital requirements," he said in remarks prepared for delivery to the Union League in Philadelphia.
"Implicit government guarantees to firms that are too big to fail and to housing finance agencies need to be reduced," he said.
Plosser did not discuss the outlook for the economy or monetary policy in a speech that focused on regulation.
The Philadelphia Fed chief questioned whether recently enacted financial regulatory reform laws will ensure the ability to wind down large firms without rattling the broader financial system. (Writing by Mark Felsenthal; Editing by Andrea Ricci)
- Gaza fighting abates as diplomatic tension flares |
- Hague court orders Russia to pay over $50 billion in Yukos case
- Europe nervy as Russian assets hit by new sanctions talk
- Ukraine troops advance as experts renew attempt to reach crash site
- Pushing locals aside, Russians take top rebel posts in east Ukraine