Steve Schwarzman:Financial Reform Is Prolonging the Economic Slump

The Dodd-Frank financial reform law is prolonging the recession, according to Blackstone founder Steve Schwarzman.

Stephen A. Schwarzman
Stephen A. Schwarzman

Speaking to an audience of UBS wealth management clients Wednesday night, Schwarzman was asked about whether the new regulations were prolonging the economic slump.

"I think that's absolutely the case," Schwarzman said.

Schwarzman was one of a number of speakers assembled by UBS to address wealth management clients on economics and politics. The event was MC'd by Bloomberg's Margaret Brennan.

Schwarzman—dressed in a white shirt, a solid pink tie, and a subtly chalk striped grey suit—also sounded skeptical about whether further easing by the Federal Reserve would improve the economy.

"It's tough to second guess Ben Bernanke. But it’s unclear to me, and I’m not an economist, but it’s not an enormous incentive to do something different with your businesses because rates are down a few basis points, money’s already quite cheap,” Schwarzman said.