Richard Fisher, president and CEO of the Federal Reserve Bank of Dallas, speaks during a conference before the Committee for the Republic Salon in Washington (Jose Luis Magaua Reuters, REUTERS / January 17, 2013)
globaleconomicanalysis.blogspot.com / By Mike “Mish” Shedlock / Thursday, January 17, 2013 6:18 PM
The Chicago Tribune reports Fed’s Fisher: Reorganize banks that are “too big to fail”
U.S. authorities should reorganize the country’s largest banks to protect against the risk of institutions that are “too big to fail” and that would saddle ordinary Americans with the cost of a bailout the next time they get in trouble, a senior Federal Reserve official said on Wednesday.
“We recommend that TBTF (too-big-to-fail) financial institutions be restructured into multiple business entities,” Richard Fisher, president of the Dallas Federal Reserve Bank, told an audience at the National Press Club in Washington.
Critics say Dodd-Frank did not go far enough, including several Fed officials who, like Fisher, want the biggest banks reined in.
Fed Governor Daniel Tarullo in October suggested capping the size of banks according to their proportion of U.S. gross domestic product and said that would require Congress to write new laws. But Fisher did not think dictating how big banks could grow was the right course.