The financial sector reforms in the US did not go far enough to ensure the banking system was free of risks and easier to regulate, and more steps need to be taken to ensure banks are not too big to fail, Nouriel Roubini, chairman of RGE Monitor, told CNBC Monday.
"In the case of the US this was an occasion to reduce the number of regulators, we have 6 of them at federal level, 50 at state and local level. It was a race to the bottom, they only closed one of them, in my view that's a mistake," Roubini told "Squawk Box Europe."
Banks that are too big to fail are simply too big, he said, and regulators should "clamp down on them much more strongly" with greater liquidity and capital requirements and rules on leverage, to make sure they are going to be broken up, he added.