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Fed's Bullard warns bank regulators are 'complacent' over fintech risks

Fed's Bullard warns bank regulators are 'complacent' over fintech risks
From Reuters - October 12, 2017

* St. Louis Fed President says fintech could eviscerate banks

* Says Fed must do more to ease regulatory burden on small banks

By Michelle Price and Howard Schneider

WASHINGTON, Oct 12 (Reuters) - U.S. banking regulators must accelerate efforts to address the risks posed by fintech companies to the banking sector which could be eviscerated by these innovative new players, St. Louis Fed President James Bullard said on Thursday.

Growing competition from fintech players has become the number one issue for large financial firms and regulators are fighting the last war by focusing on tweaks to post-crisis financial rules, Bullard told Reuters in an interview.

We need to speed up our consideration of the fintech issues and think harder about what is the regulatory environment that is going to be appropriate. I think we have been complacent so far, Bullard said.

That is the battleground for the next ten years. It is not the same as the battleground for the previous ten years.

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