“I'm more cautious than bearish” about the U.S. approach to its fiscal problems, Mr. Fink said at a conference sponsored by Charles Schwab in San Diego.
Mr. El-Erian, echoing Mr. Fink's sentiments, added: “We still don't have a system yet that can deal with large (troubled) financial institutions.”
The effectiveness of new regulations will be mixed, they said.
“We'll have a bunch of smart regulations and a bunch of dumb regulations,” once the political process plays out, Mr. El-Erian said.
Mr. Fink also stressed the need for regulators to ensure greater transparency in the capital markets.
The two were speaking at the Schwab Impact conference for financial advisers.
Dan Jamieson is a reporter at InvestmentNews, a sister publication of Pensions & Investments.