Federal financial regulators’ deregulatory spree is creating a “perfect storm” for the next financial crisis, warns Woodstock Institute President & CEO Horacio Méndez in this op-ed published in The American Banker.
The recently released proposal to weaken bank capital standards is excellent evidence of the dangerous retreat from the safeguards necessary to protect low- to moderate-income, or LMI, communities and communities of color from financial instability. With the Fed supervisory staff cut by over 30%, similarly debilitating staff cuts at the other agencies, and capital requirements being slashed through this proposal, the FFIEC is creating a “perfect storm” for the next financial crisis.
