--- title: "Meaning & Key Takeaway of: Legislative reforms in the 1990s and the…" description: "\"Legislative reforms in the 1990s and the public/private structure led managements to expand the GSEs' balance sheets to enormous size, underpinned by w..." image: "https://sms4smile.com/quotes/i/332/jerome-powell-7353_balance_legislative-reforms-in-the-1990s-and-the_2781233.jpg" --- # Legislative reforms in the 1990s and the public/private… ![“Legislative reforms in the 1990s and the public/private structure led managements to expand the GSEs' balance sheets to enormous size, underpinned by wafer-thin slivers of capital, driving high shareholder returns and very high compensation for management.” quote by Jerome Powell](https://sms4smile.com/quotes/i/332/jerome-powell-7353_balance_legislative-reforms-in-the-1990s-and-the_2781233.jpg) [Download](https://sms4smile.com/quotes/i/332/jerome-powell-7353_balance_legislative-reforms-in-the-1990s-and-the_2781233.jpg) [Open image](https://sms4smile.com/quotes/i/332/jerome-powell-7353_balance_legislative-reforms-in-the-1990s-and-the_2781233.jpg) > “Legislative reforms in the 1990s and the public/private structure led managements to expand the GSEs' balance sheets to enormous size, underpinned by wafer-thin slivers of capital, driving high shareholder returns and very high compensation for management.” [Jerome Powell](https://sms4smile.com/quotes/author/jerome-powell/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Deregulation and thin capital buffers allowed financial institutions to expand risk, leading to high profits and executive pay. **In simple terms:** Weak oversight let banks grow dangerously. Key Takeaway Strengthen capital requirements and oversight. Themes financial regulation risk management corporate governance Mood cautious analytical Type economic policy When to use this quote - banking sector - policy reform - executive compensation Key Concepts leverage moral hazard shareholder incentives Questions to Reflect On - How to balance risk control with market dynamism? - What safeguards prevent future excesses? A Different Perspective Over‑regulation can stifle innovation and credit availability. ★ ★ ★ ★ ★ No ratings yet [Balance](https://sms4smile.com/quotes/about/balance/) [Driving](https://sms4smile.com/quotes/about/driving/) [Expand Gses](https://sms4smile.com/quotes/about/expand-gses-3311702/) [Gses Balance](https://sms4smile.com/quotes/about/gses-balance-3311704/) [High](https://sms4smile.com/quotes/about/high/) [High Shareholder](https://sms4smile.com/quotes/about/high-shareholder-3311700/) [Management](https://sms4smile.com/quotes/about/management/) [Managements Expand](https://sms4smile.com/quotes/about/managements-expand-3311701/) [Reforms 1990S](https://sms4smile.com/quotes/about/reforms-1990s-3311703/) [Size](https://sms4smile.com/quotes/about/size/) ## Related quotes > [My embarrassing confession is that my father is a 'Camelot: The Musical' obsessive. 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But the project will take years to complete. Success…](https://sms4smile.com/quotes/jerome-powell/the-too-big-to-fail-reform-project-is-massive-in-scope-in-my-view-it/) [Jerome Powell](https://sms4smile.com/quotes/author/jerome-powell/) > [The financial crisis and the Great Recession left firms with excess capacity, reducing incentives to invest. If businesses expect slower growth to continue, that…](https://sms4smile.com/quotes/jerome-powell/the-financial-crisis-and-the-great-recession-left-firms-with-excess/) [Jerome Powell](https://sms4smile.com/quotes/author/jerome-powell/) > [All economic forecasts are subject to considerable uncertainty. 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Humphrey](https://sms4smile.com/quotes/author/hubert-h-humphrey/) > [“We don't need to strive towards balance, we rather need to work on the obstacles that are preventing the natural flow of balance.”](https://sms4smile.com/quotes/a-a-alebraheem/we-don-t-need-to-strive-towards-balance-we-rather-need-to-work-on-the/) [A.A. Alebraheem](https://sms4smile.com/quotes/author/a-a-alebraheem/) > [I think that kind of balance comes with the process of growing together as a band, the Little Dragon. 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Five hundred miles an hour.](https://sms4smile.com/quotes/yanni/when-it-comes-down-to-music-i-have-no-balance-i-am-100-percent-it-is/) [Yanni](https://sms4smile.com/quotes/author/yanni/) [Browse all 5,166 Balance quotes ](https://sms4smile.com/quotes/about/balance/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Legislative reforms in the 1990s and the public/private structure led managements to expand the GSEs' balance sheets to enormous size, underpinned by wafer-thin slivers of capital, driving high shareholder returns and very high compensation for management.", "creator": { "@type": "Person", "name": "Jerome Powell" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/jerome-powell/legislative-reforms-in-the-1990s-and-the-public-private-structure-led/", "about": { "@type": "Thing", "name": "Balance" }, "@id": "https://sms4smile.com/quotes/jerome-powell/legislative-reforms-in-the-1990s-and-the-public-private-structure-led/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/332/jerome-powell-7353_balance_legislative-reforms-in-the-1990s-and-the_2781233.jpg", "contentUrl": "https://sms4smile.com/quotes/i/332/jerome-powell-7353_balance_legislative-reforms-in-the-1990s-and-the_2781233.jpg", "url": "https://sms4smile.com/quotes/i/332/jerome-powell-7353_balance_legislative-reforms-in-the-1990s-and-the_2781233.jpg", "width": 1080, "height": 1080, "caption": "“Legislative reforms in the 1990s and the public/private structure led managements to expand the GSEs'…” — Jerome Powell", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Jerome Powell", "item": "https://sms4smile.com/quotes/author/jerome-powell/" }, { "@type": "ListItem", "position": 4, "name": "Legislative reforms in the 1990s and...", "item": "https://sms4smile.com/quotes/jerome-powell/legislative-reforms-in-the-1990s-and-the-public-private-structure-led/" } ], "@id": "https://sms4smile.com/quotes/jerome-powell/legislative-reforms-in-the-1990s-and-the-public-private-structure-led/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```