Former Federal Deposit Insurance Corporation, or FDIC, Chair Bill Isaac reportedly said that regulators were slow to act in the wake of the banking crisis but asserted there's no need for more regulation.
What Happened: "I believe they were slow to act — both the state of California, which was the primary regulator, and the Federal Reserve, which was the primary Federal regulator, and even the FDIC, which, in the end, had the authority to go in and deal with it if nobody else was," he told Bloomberg TV.
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The FDIC, which is staring at about $23 billion in costs from recent bank collapses, is reportedly mulling to shift a larger-than-usual portion of the burden to the biggest banks in the U.S.
Officials are considering to limit the strain on community lenders by shifting a larger portion of the costs toward big lenders, Bloomberg reported.
More Regulation: Isaac pointed out that there was already way too much regulation in the system and that bringing in further regulation would be counterproductive. He, however, believes regulators need to be more aggressive about getting on top of banks that are not doing things in the right way.
"Every time a problem happens, Congress decides they have to put some more regulation in place which makes it much more complicated for everybody — the banks, the regulators, the public. So, I think we ought to slow down on rushing to the fire here and throwing more regulations on top of it. It’s counterproductive, it’s not working and we need to learn that lesson and start doing the job properly at all levels," he said.
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