FRANKFURT (Reuters) - Tearing up global banking rules could lead to a new crisis, putting at risk the taxpayer, who was forced to bail out lenders in the last financial crisis, European Central Bank Executive Board member Sabine Lautenschlaeger said on Monday.
“Listening to some politicians, I am worried that we are about to enter the next stage of the cycle: a new wave of deregulation,” Lautenschlaeger said in Dublin.
“The history of finance seems to follow an eternal cycle,” Lautenschlaeger said. “A crisis happens and the rules are tightened. After a while, people forget the crisis, and the rules are loosened. This leads to the next crisis, which takes everyone by surprise.”
Reporting by Balazs Koranyi; Editing by Toby Chopra
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