While much of the Dodd-Frank legislation to curtail excessive risk-taking by banks brought in after the global financial crisis has been good, there still remains scope for change, the chief executive of Goldman Sachs International told CNBC on Tuesday.
"I think much of what came in Dodd-Frank is very good and was absolutely appropriate. But there will be room for maneuver and for change and I'm sure we'll see some change," Richard Gnodde, speaking exclusively to CNBC at the Goldman Sachs Disruptive Tech Symposium about the financial reform legislation passed under former President Barack Obama's regime in 2010.
"Much of that regulation is very, very good regulation. But given the amount and the volume that is in place, I think it does make sense," said Gnodde, referencing the decision by President Donald Trump's administration to review the "enormous amount" of regulation adopted both in the U.S. and globally over the past eight years.
Noting that European leaders are going through a similar process at the moment of looking at evidence and questioning what works and what is less effective, the veteran banker agreed that the U.S. administration had good reason to undertake an analogous review.
"What's most important is that we end up with a financial system that is safe and sound but can also perform what it's meant to perform, which is bringing capital in an efficient, cost effective way, bringing liquidity to the markets in a safe and sound way, so that the financial system can operate," he explained.