Lew says delays on rules may again bring bailouts
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.