Post-financial crisis changes have made the financial system more stable, but policymakers need to acknowledge that large banks still pose systemic risk, Minneapolis Fed President Neel Kashkari contended Tuesday.
Kashkari, 42, started at the bank earlier this year and quickly made further regulation a top priority. On Monday, he hosted a symposium in Minneapolis called “Ending Too Big to Fail,” where experts floated ideas about how best to make the financial system safer.
“I just don’t want the American people to have a false sense of security that we’ve addressed ‘too big to fail,’ that this can’t happen again,” Kashkari told CNBC’s “Closing Bell.” “I think some of those risks remain. And we need to consider more transformational solutions to deal with this problem once and for all.”
Kashkari, who previously worked at the Treasury Department and Goldman Sachs, has jumped into a debate that rages even after the passage of the Dodd-Frank Act. Policymakers continue to question whether the measures went far enough to reduce financial system risk, and Sen. Bernie Sanders of Vermont has made reining in Wall Street a cornerstone of his Democratic presidential campaign.