Fed’s Kashkari Says Odds of Another Crisis at 67%

Tougher banking regulations put into effect since the Great Recession have lowered the chances of another financial crisis, but they odds are still much too high, Minneapolis Federal Reserve President Neel Kashkari told CNBC on Thursday.

Based on an analysis of data from the International Monetary Fund on past crises, Kashkari said on “Squawk Box” the odds of another bust over the next century are now 67 percent, down from 84 percent.

“I think if most Americans knew that they’d say that’s ridiculous. That’s much too high,” he said.

Kashkari, who unsuccessfully ran as a Republican for governor of California in 2014, was the administrator of TARP, the Troubled Asset Relief Program, at the Treasury Department during the 2008 financial crisis.

After leaving Washington, Kashkari joined Pimco as a managing director and head of global equities. Before his time at treasury, he was a vice president at Goldman Sachs.

On Wednesday, Kashkari unveiled a plan aimed at preventing future government bailouts by forcing the largest U.S. banks to hold so much capital that they would probably decide to break up into smaller parts.

The set of regulations introduced since the crisis known as Dodd-Frank, did not go far enough, he added.

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.