He also said he thought Dodd-Frank banking regulation legislation would not be repealed, though there may be some adjustments.
“I don’t think Dodd-Frank as a whole is going to be repealed, but there may be some adjustments to it,” he said. “Significantly reducing capital requirements would reduce the safety of the system. I certainly hope it’s not going to happen.”
Dodd-Frank financial regulation was passed in 2010 after the financial crisis of 2008-09, and included legislation requiring banks to maintain higher levels of capital.
Fischer also mentioned adjustments to Dodd-Frank could include being less demanding of community banks.
The comments came the day after the Federal Reserve Board’s top bank regulator, Daniel Tarullo, said he would resign, giving a boost to President Donald Trump‘s plans to ease reforms put in place after the 2008-09 financial crisis.
Trump last week ordered reviews of major banking rules that were put in place after the 2008 financial crisis, drawing fire from Democrats and sending banking stocks higher on expectations that looser banking regulation is coming.