In a recent hearing, Senator Elizabeth Warren told US Federal Reserve chairman Jay Powell that he is “a dangerous man” and that she would not support his renomination to head the central bank.
Warren said deregulation supported by Powell over the past four years has undermined the financial stability of the banking system. I believe that is an accurate description. Powell’s actions have moved the US closer to future financial crises and bailouts funded by taxpayers, as happened in 2008.
The actions were aimed at the most important reforms after 2008 across five key areas: capital requirements, supervision, proprietary trading, living wills to allow stricken banks to be safely unwound and the amount of assets banks must hold that are “liquid” and easy to sell.