Senior Chair Rodge Cohen appeared on Bloomberg TV’s “Balance of Power” to discuss several pressing topics in the banking world, including Congress’ delay in approving President Biden’s nominees for top positions at the Federal Reserve, a new set of trading restrictions for senior Federal Reserve officials, and potential sanctions on Russian banks if the country invades the Ukraine.
Rodge noted that the most pressing economic issue facing the Federal Reserve is fighting inflation, and the Fed may have less credibility if it lacks a confirmed Chair, Vice-Chair and full complement of Governors. The absence of a Vice-Chair for Supervision will be particularly troublesome, he added, given pending critical regulatory issues such as a new capital structure for the largest banks, Community Reinvestment Act reform and cryptocurrency regulation.
Addressing the new set of trading restrictions for senior Federal Reserve officials, Rodge said they make great sense, and that the Fed wants to be a bastion of transparency and probity.
Turning to the prospect of economic sanctions on Russia if it invades the Ukraine, Rodge noted that the Iranian sanctions demonstrated that sanctions program on banks can be a powerful economic weapon. But, he said, they must have three prerequisites: They must be a joint effort with allies; they must identify banks enabling evasion; and they must target the most significant Russian banks.
To watch Rodge’s appearance, click here.
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