In December, the Federal Reserve proposed new capital and liquidity rules as required under Dodd-Frank. The rules were intended to restrain risk-taking by the largest U.S. banks by imposing stricter capital and liquidity standards. Last Friday, the Fed announced it is extending the comment period on the proposal to April 30 from March 31. The extension of the comment period gives the financial industry and the general public more time to share their views, concerns, and criticisms on the complicated issue.
According to Reuters,
The Fed cited “the range and complexity of the issues addressed in the rulemaking” as the reason for pushing back the comment deadline.
The delay comes as regulators remind Americans that financial reform must move forward with conviction, or risk a repeat of the searing loss of wealth and jobs.
In an editorial for The Wall Street Journal published on Thursday, Treasury Secretary Tim Geithner warned readers that “Amnesia is what causes financial crises.”
“Remember the crisis when you hear complaints about financial reform … Remember the crisis when you read about the hundreds of millions of dollars now being spent on lobbyists trying to weaken or repeal financial reform,” he added.
It is questionable whether the American public has been fortunate enough to afford amnesia regarding the financial crisis as its ripple effects are still being felt within home foreclosures, bankruptcies, as well as throughout the domestic and international market. That being said, it is important to get the word out that people have more time to let the Fed know how they feel about restricting big banks.