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NY Fed's Dudley: regulators must stay ahead of curve
October 18, 2013 / 7:51 PM / 4 years ago

NY Fed's Dudley: regulators must stay ahead of curve

President of the Federal Reserve Bank of New York William Dudley attends a forum organized by Mexico's Central Bank in Mexico City October 15, 2013. REUTERS/Tomas Bravo

WASHINGTON (Reuters) - Regulators need to find ways to force financial firms to take actions that would keep the firms from running into the type of trouble that could call for their unwinding, New York Federal Reserve President William Dudley said on Friday.

“We need to do more to create incentives to force banks to act sooner to steer away from impending icebergs,” Dudley told a conference in Washington.

He said regulators should consider making firms cut capital distributions earlier, raise new capital faster and restructure businesses sooner when the firm is not performing well.

“One approach might be to implement a long-term debt requirement in a way that enhances market discipline,” Dudley said.

Reporting by Jason Lange; Editing by Andrea Ricci

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