WASHINGTON — Federal Reserve board member Sarah Bloom Raskin Tuesday defended moves by the Federal Reserve and other regulators who have taken steps to improve compliance and rein in bad practices by financial initiations that contributed to the financial crisis.
"I haven't seen overzealous examination" Raskin said addressing critics of the current regulatory environment while speaking on a panel at Suffolk University in Boston.
"I hear a lot of financial insertions say that we have created so much uncertainty because these rules are not getting out fast enough," she added, saying that she has also heard critics say regulators are moving too quickly with new regulations.
"I think it is important that we are ponderous and give the public a chance to comment" she said, noting that she believes regulators are being diligent and balanced.
Raskin also she does not take issue with regulators sharing the same turf, adding that in many cases certain regulators are better positioned than others.
"We want to have different people from different levels to have visibility," she said, adding that state regulators are often better positioned than Federal regulators to identify developing trends and new products.
However, she said "we need a culture of compliance" and that financial institutions need to be where regulators are not.
Raskin said that there are often areas within an institution that "regulators would have no idea how to permeate" and that it is up to the institution to take steps to develop compliance in these areas so regulators are not forced to "permeate and quash" issues that could arise.
Raskin was the Commissioner of Financial Regulation for the State of Maryland prior to her appointment at the Fed.
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