The regulatory reform proposals before Congress do not offer “meaningful reform” and could lead to more future crises rather than avert them, Federal Reserve Bank of Philadelphia president and chief executive officer Charles Plosser said yesterday.

“In my view, the proposals for regulatory reshuffling, at best, miss the point of what is required for meaningful reform and, at worst, weaken the current regulatory framework,” he told the Global Interdependence Center, according to prepared text of his remarks released by the Fed.

 “The real danger,” according to Plosser, “is that such proposals increase the likelihood of future crises rather than fixing the problem.”

Plosser suggested a change in the bankruptcy laws directed at large non-bank financial institutions to offer “a credible resolution mechanism to allow the orderly failure of large and interconnected financial firms,” which recognizes “that no firm should be too big to fail.”

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