Breaking News Bar
updated: 7/17/2013 11:41 AM

Lew says delays on rules may again bring bailouts

Success - Article sent! close
Associated Press

WASHINGTON -- U.S. Treasury Secretary Jacob Lew says delays in writing rules to put the financial overhaul law into effect have raised the prospect that taxpayers might again have to bail out big banks that fail.

Lew says that means policymakers would have to consider new approaches. His comments came Wednesday at a conference organized by CNBC.

If rules putting the 2010 law in place aren't sufficient by year's end to eliminate the possibility of taxpayer bailouts, Lew says "We're going to have to look at other options." Lew didn't specify what the options might be.

He said the Obama administration has the same goals as the senators who recently proposed legislation that would force banks to split off their conventional lending and deposit-taking into separate companies from investment banking and other riskier activities.

Article Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.