Lew pointed out the progress in implementing the Dodd-Frank Act regulations, although it has taken longer than expected. He also reminded the audience to be mindful of a few notes:
First, the rules of the road must be effective and designed to address the modern financial markets. Second, we must make sure regulators have the resources necessary to get the job done and that they are held accountable. Third, other countries need comparably strong standards and mechanisms to address risks that reach across borders. And finally, we must remain vigilant to potential new threats, constantly monitoring the way that risks change and evolve and pursuing reforms to reduce risks stemming from both traditional banking and the shadow banking system.Lew further notes that success will depend on striking the right balance of “maintaining deep, liquid financial markets that promote strong credit creation and lending, and protecting our economy and the American taxpayer from excessive risk-taking.”
Read the speech.