I spoke with David Hollerith at Yahoo! Finance on how the incoming presidential administration could reform banking regulation.
From the article:
Former FDIC chair Bill Isaac, who was appointed by Republican President Ronald Reagan, said in a proposal last April that the current bank regulatory system is “complicated, inefficient, and badly broken.”
“Our current bank regulatory system is the result of over two centuries of ad hoc ‘Band-Aid’ fixes to solve specific historical problems and crises, rather than overhauling the system with a design that will work long-term.”
Isaac told Yahoo Finance he doesn’t believe the FDIC should be involved in the daily supervision of banks but warned against its outright elimination.
“I think it would be a serious mistake, and I feel very strongly about that. It’s the banking system’s fail-safe,” Isaac said.
You can read the full article here.