- Minneapolis Fed President Neel Kashkari says regulators have not done enough to solve the problem of "too big to fail" banks, and they therefore might require taxpayer bailouts during a crisis.
- "We are forgetting the lessons of the 2008 crisis," Kashkari told a group at Howard University.
- "The shareholders got bailed out. The boards of directors got bailed out. Management got bailed out. So from their perspective, there was no crisis," he said.
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FED'S KASHKARI: Wall Street is 'forgetting the lessons of the 2008 financial crisis'
"We are forgetting the lessons of the 2008 crisis," Kashkari told a group at Howard University.
A top Federal Reserve official said Monday that Wall Street and bank regulators run the risk of allowing another financial crisis to occur because many have forgotten the pain from the 2008 meltdown.
Neel Kashkari, president of the Minneapolis Fed, told an event at Howard University: "The shareholders got bailed out. The boards of directors got bailed out. Management got bailed out. So from their perspective, there was no crisis."
Kashkari, long an advocate of more stringent regulations to rein in major banks, said US labor groups, whose pension funds took major hits during the crisis, may have a role to play in countering the political influence of the nation’s largest banks.
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They have been campaigning, fairly successfully, to roll back many of the post-crisis regulations known as Dodd-Frank, which President Donald Trump has vowed to largely repeal.
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