NEW YORK, April 7 (Reuters) - The United States should consider limited adjustments to the landmark financial reforms adopted following the financial crisis, including the so-called Volcker Rule, the “stress tests” of large firms and unnecessary burdens on small banks, a key Federal Reserve official said on Friday.
New York Fed President William Dudley, echoing many recommendations of former Fed Governor Daniel Tarullo, who stepped down this week, also pushed back on Republican critics of the U.S. central bank’s participation in global Basel meetings meant to coordinate financial regulations.
“It is entirely appropriate to take a critical look at the changes that were made to the regulatory regime,” Dudley, whose New York branch serves as the Fed’s eyes and ears on Wall Street, told the Princeton Club of New York.
“While we do not yet have evidence of how these reforms will hold up during the next economic downturn, many have been in place long enough that we can begin to evaluate their efficacy,” he said of the 2010 Dodd-Frank law that toughened rules and oversight for financial institutions that exacerbated the crisis. (Reporting by Jonathan Spicer; Editing by Meredith Mazzilli)