Former Federal Reserve Chairman Alan Greenspan said sweeping post-crisis reforms of the U.S. financial system haven’t fixed the problem they were designed to tackle and should be scrapped, escalating his long-standing criticism of the 2010 Dodd-Frank Act, Bloomberg News reported yesterday. Greenspan’s hands-off approach while he helmed the U.S. central bank was blamed by many critics for fostering conditions that incubated the global financial crisis. While Greenspan said in 2008 that his free-market ideology shunning regulation was flawed, he has for years been skeptical of Dodd-Frank, enacted after the turmoil to make banks stronger and subject to better oversight. U.S. Treasury Secretary Jacob J. Lew, in separate remarks on Thursday, said that Dodd-Frank had made the financial industry safer. “It would be a mistake to roll back the clock on these protections,” he said in testimony to Congress.
