Yellen Warns Trump Against Risky Deregulation of Banking Sector

U.S. Treasury Secretary Janet Yellen urged caution against drastic deregulation of bank oversight as Trump's administration transitions in. While acknowledging regulatory system flaws, she emphasizes the necessity of capital and liquidity regulations to prevent bank failures and financial crises, referencing recent bank collapses and historical lessons.

U.S. Treasury Secretary Janet Yellen has urged the incoming Trump administration to reconsider any plans for radical deregulation of financial oversight, highlighting the importance of capital and liquidity frameworks in maintaining banking system stability.

While she acknowledges the regulatory system's imperfections, Yellen stresses the risks of significant overhauls, cautioning against dismantling the protective measures that have been instrumental in preventing financial crises.

Yellen points to the recent collapses of Silicon Valley Bank and Signature Bank as reminders of the critical need for appropriate supervision and regulation to safeguard the economy and ensure financial stability.

(With inputs from agencies.)