Treasury Secretary Jacob J. Lew on Financial Reform After the Great Recession

Treasury Secretary Jacob J. Lew on Financial Reform After the Great Recession
1min 47sec

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."