Michael Held, Vice President and General Counsel of the Federal Reserve Bank of New York discussed the many lessons learned from the financial crisis and cautioned against the dangers of forgetting these lessons. Mr. Held conceded that although post-crisis reforms and regulations should be reviewed, they should not be repealed at the cost of safety and soundness. Mr. Held discussed the improved resilience of the financial system, including praising the Orderly Liquidation Authority and other post-crisis improvements to the bankruptcy process, as improving cross-border resolution. Mr. Held stressed that financial institutions and regulators need to evolve as systems and risks evolve, in order to be adequately prepared for the next economic downturn.

A day prior, Martin J. Gruenberg, Chairman of the US Federal Deposit Insurance Corporation warned against repeating prior mistakes in the current economic and regulatory climate noting that despite economic prosperity, there is still an ever-present possibility of an economic shock. Chairman Gruenberg highlighted that the post-crisis financial reforms have been largely positive, and have fostered growth while also strengthening the safety and soundness of financial institutions. At the same time, Gruenberg conceded that much of the post-crisis regulations could benefit from comprehensive review and streamlining, but cautioned against eroding the protections that have been implemented.

View full text of Mr. Held’s remarks.

View full text of Chairman Gruenberg’s remarks.