Bill Isaac, former Federal Deposit Insurance Corporation, said regulators were slow to act in the wake of the banking crisis and that there was no need for more regulation.
What happened to the state of California, which was the primary regulator and the Federal Reserve, which in the end had the authority to deal with it if nobody else was, he told Bloomberg TV.
The pressure on community lenders is being reduced by moving a larger portion of the costs to big lenders, according to Bloomberg.
Isaac pointed out that there was already way too much regulation in the system and that bringing in more regulation would be counterproductive. He believes that regulators need to be more aggressive about getting on top of banks that are not doing the right way.
Every time a problem happens, Congress decides to put more regulation in place, making it more complicated for everyone - the banks, regulators, the public. I think we should slow down on rushing to the fire and putting more regulations on top of it. It's counterproductive, it's not working and we need to learn that lesson and do the job properly at all levels, he said.
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