Treasury Secretary Jacob J. Lew on Financial Reform After the Great Recession
U.S. Treasury Secretary Jacob J. Lew outlined financial reforms developed after the Great Recession in a policy address held at The Pew Charitable Trusts. Watch more at: http://www.pewtrusts.org/news_room_detail.aspx?id=85899524373.
"Dodd-Frank ended 'too big to fail' as a matter of law; tough rules are now in place to make sure banks have the capital to absorb their own losses; monitoring through stress tests is underway; and resolution authorities and plans are in place," Secretary Lew said to an audience of financial experts and journalists. "There is a growing recognition of these changes, and market analysts are now factoring them into their assumptions.
"Put simply, the reforms we are putting in place raise the cost for a bank to be large, requiring firms to internalize their risks, and together, with resolution authority and living wills, make clear that shareholders, creditors, and executives—not taxpayers—will be responsible if a large financial institution fails."