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Rick Perry says financial regulations pre-2008 were “adequate”

Rick PerryRepublican presidential hopeful Rick Perry is suggesting that government financial regulators were responsible for the 2008 financial crisis rather than large financial institutions.

During an interview with CNBC’s John Harwood, Perry said that he supports ending the Dodd-Frank Act, last year’s financial reform overhaul legislation. He also said that he wants to see an end to a provision of the earlier Sarbanes-Oxley Act that requires public companies to explain their internal control procedures, MSNBC.MSN.com reports.

Harwood asked Perry during the interview whether or not he thought Wall Street was adequately regulated before 2008.

“Yes, absolutely, I think it was adequate,” Perry said, according to MSNBC.MSN.com. “You had a bunch of regulators that weren’t doing their job.”

In addition to making calls for scrapping new financial regulations, Perry has issued a plan for an “optional” flat tax. As a part of the plan, filers would have the choice of following the existing tax code or the new flat tax.

In his recent book, "Fed Up!: Our Fight to Save America from Washington," Perry blamed faulty regulation on the financial crisis.

“Fundamentally, the financial crisis of 2008 was the product of a number of forces,” Perry’s book said, NationalReview.com reports. “Significant among them were the federal government’s mandate that banks provide a certain number of loans, that Fannie Mae and Freddie Mac existed to purchase these loans (thereby hedging the banks’ risk and encouraging banks to make loans that a free market would never sustain), and the Federal Reserve’s monetary policy of extremely low interest rates over a long period of time. These government interventions in the free market let to a bubble that eventually burst.”
 

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