Fed Should Push to Cut Biggest Banks Down to Size
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Oct. 15 (Bloomberg) -- Daniel Tarullo, a governor of theFederal Reserve System, spoke for the first time last week aboutpotentially imposing a size cap on the largest U.S. banks. Hislanguage, naturally, was that of a central banker.
“To the extent that a growing systemic footprint increasesperceptions of at least some residual too-big-to-fail quality insuch a firm, notwithstanding the panoply of measures in Dodd-Frank and our regulations, there may be funding advantages forthe firm, which reinforces the impulse to grow,” he said in aspeech at the University of Pennsylvania Law School. “There is,then, a case to be made for specifying an upper bound.”