Tarullo: ‘Tragic if lessons of financial crisis forgotten so quickly’

Calling it “tragic” if the lessons of the financial crisis were forgotten so quickly, outgoing Federal Reserve Board Gov. Daniel K. Tarullo Tuesday said it is crucial that a strong capital regime for financial institutions be maintained, in his final speech as a member of the board.

As proposals for regulatory change swirl about, Tarullo said, “neither regulators nor legislators should agree to changes that would effectively weaken that regime, whether directly or indirectly.” In remarks at Princeton University’s Woodrow Wilson School, Tarullo said “it would be tragic if the lessons of the financial crisis were forgotten so quickly.”

The governor, whose last day on the board is officially Wednesday, said he concentrated on capital regulation in his remarks because it is the “single most important element of prudential financial regulation.”

Departing Thoughts: Governor Daniel K. Tarullo

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