Pawlenty: Regulators Risk Limiting Credit for Consumers By Michael R. Crittenden U.S. financial regulators risk limiting the credit available to consumers if they continue to press banks to hold ever-higher levels of capital, Financial Services Roundtable head Tim Pawlenty said in an video interview with The Wall Street Journal. Mr. Pawlenty, who is closing in on his first anniversary as president and CEO of the industry group, said the 2010 Dodd-Frank financial overhaul law and other post-2008 crisis reforms have largely been appropriate. While he and other financial services leaders think aspects of the law could be improved, he said it has moved the financial sector in the right direction, particularly in dealing with concerns that some banks remain “too big to fail.” “Nobody should be too big to fail, nobody should get future bailouts, and Dodd-Frank addresses that very specifically,” Mr. Pawlenty said. He cautioned, however, that the growing call by some lawmakers to break up the banks or sharply increase the safety buffers for banks could end up hurting the U.S. economy rather than protecting it from future crises. The U.S. needs banks and financial services firms of all sizes to provide the bank accounts, insurance policies and other products consumers require, he said, including large institutions that operate around the world, Mr. Pawlenty said. “We also need some large banks that can participate in global transactions and these large global deals,” he said. “If we don’t, we’re just taking ourselves off the playing field and relegating those opportunities, giving those opportunities to places like China or Europe or Brazil.” blogs.wsj/washwire/2013/08/14/pawlenty-regulators-risk-limiting-credit-for-consumers/
Posted on: Wed, 14 Aug 2013 21:07:14 +0000
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