Fed’s Rosengren, Dudley Say Broker Regulations Need Overhaul

Federal Reserve Bank of Boston President Eric Rosengren said broker regulation needs a “major re-examination” to prevent funding shortfalls during a crisis, and New York Fed President William C. Dudley said the wholesale funding system must have greater stability.

“Broker-dealers can experience significant funding problems during times of financial stress,” Rosengren said in remarks to a Fed conference on wholesale funding risk in New York. “Unfortunately that potential for problems has not been fully addressed since the crisis.”