Tearing up global banking rules could lead to a new crisis, putting at risk the taxpayer, who was forced to bail out lenders in the last financial crisis, European Central Bank executive board member Sabine Lautenschlaeger said today.
Sabine Lautenschlaeger made her comments in Dublin today, where she speaking at the Institute of International and European Affairs.
"Listening to some politicians, I am worried that we are about to enter the next stage of the cycle: a new wave of deregulation," Lautenschlaeger said.
"The history of finance seems to follow an eternal cycle," she added.
"A crisis happens and the rules are tightened. After a while, people forget the crisis, and the rules are loosened. This leads to the next crisis, which takes everyone by surprise," she stated.