Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Fed's Kocherlakota Says Largest Banks Threaten Stability

Nov. 30 (Bloomberg) -- Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said banks deemed “too big to fail” pose a significant risk to financial stability, while noting their threat has waned in recent years.

“The size of the TBTF problem has fallen over the past couple of years but remains large,” Kocherlakota said today in the text of prepared remarks given in Boston.

More than four years after the collapse of Lehman Brothers Holdings Inc., U.S. regulators are still grappling with how to reduce the risk taxpayers will need to bail out too-big-to-fail financial firms in a crisis. Kocherlakota stressed the need to develop a way to measure the problem, saying current approaches are inadequate.

“How will we know if these changes in laws and regulations are working?” Kocherlakota said at a conference at the Boston Fed, referring to the overhaul required under the Dodd-Frank Act. “There is no way to answer this question without a measure -- or preferably a range of measures -- of the size of the TBTF problem.”

The Minneapolis Fed chief didn’t comment on his outlook for the economy or monetary policy. He is not a voting member of the policy-setting Federal Open Market Committee this year.

To contact the reporter on this story: Aki Ito in San Francisco at

To contact the editor responsible for this story: Christopher Wellisz at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.