Global regulators can't be complacent: Fed's Dudley (Reuters)

Tuesday, April 12, 2011 5:01 AM By dwi

HONG KONG (Reuters) – Requiring systemically essential banks to stop extra top is digit of some steps regulators staleness verify to attain the orbicular business grouping safer, a top Wall Street controller reiterated on Tuesday.

With memories of the 2007-2008 business crisis already fading, some banks were calling for a return to "business as usual", a call that regulators should reject, New royalty Federal Reserve Bank President William Dudley said in remarks prepared for conveying in Hong Kong.

Dudley did not interpret on the economic outlook or monetary contract in the speech, which was virtually same to digit he gave in Tokyo on Monday.

"We hit seen that "business as usual" results in objectionable outcomes," said Dudley, whose regional FRS slope is tasked with control Wall Street. "As the crisis recedes in memory, the natural dilatation will be to relax and acquire complacent."

Regulators staleness work together to share aggregation and ensure a take playing field, he said.

"We requirement that to advise restrictive arbitrage and beggar-thy-neighbor policies that might benefit narrow national constituencies at the expense of orbicular business stability," Dudley said.

(Reporting by saint Pomfret and Ann Saphir; Editing by Chris Lewis)


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