NEW YORK (Reuters) – Regulations implemented since the 2007-2009 financial crisis have only made the biggest U.S. banks bigger and hurt competition in the industry, Gary Cohn, the former director of the U.S. National Economic Council said on Monday at an event hosted by Reuters Breakingviews.
FILE PHOTO: Director of the National Economic Council Gary Cohn arrives before a joint news conference of U.S. President Donald Trump and Spanish Prime Minister Mariano Rajoy at the White House in Washington, U.S., September 26, 2017. REUTERS/Joshua Roberts
“We haven’t ended ‘too big to fail,’” Cohn said. “We made rules and regulations that made (the big banks) bigger. Congratulations.”
Cohn, 58, who was the No. 2 executive at Goldman Sachs Group Inc before joining the Trump administration, also defended the fact that no top bankers have gone to jail for behavior leading to the financial crisis. He argued that they did not break any laws and that some, like former Lehman Brothers Chief Executive Dick Fuld, lost much of their wealth.
Reporting by Anna Irrera; Writing by Lauren Tara LaCapra; Editing by Lisa Shumaker