U.S. Treasury Secretary Scott Bessent says 'deeper reforms rooted in a long-term blueprint for innovation, financial stability, and resilient growth' are needed.Nathan Howard/Reuters
U.S. Treasury Secretary Scott Bessent on Monday called for deeper reforms of an antiquated financial regulatory system and said regulators should consider scrapping a dual capital requirement structure for banks proposed during the Biden administration.
Speaking at the start of a Federal Reserve regulatory conference, Bessent said excessive capitalization requirements were imposing unnecessary burdens on financial institutions, reducing lending, hurting growth and distorting markets by driving lending to the non-bank sector.
“We need deeper reforms rooted in a long-term blueprint for innovation, financial stability, and resilient growth,” Bessent said in prepared remarks.