Skip to main content

Newsroom

January 7, 2013

Tarullo Sees Big Banks With Fed Rule Protecting Taxpayer

 

“Federal Reserve Governor Daniel Tarullo is pushing an agenda to regulate banks beyond the restraints in the Dodd-Frank Act, including making them fund more of their assets using long-term borrowing.”

“The Fed and the Federal Deposit Insurance Corp. are holding preliminary discussions on a rule that would require holding companies for the largest U.S. banks to maintain a minimum amount of long-term debt that would aid in winding them down in case they fail, FDIC spokesman Andrew Gray said.”

“As the Fed governor in charge of bank supervision, Tarullo leads the central bank’s effort to implement the 2010 Dodd-Frank Act and is now pressing beyond it to limit the kind of systemic risks that required taxpayer-funded bailouts in the 2008-2009 financial crisis. Tarullo, 60, became President Barack Obama’s first appointee to the Fed in January 2009 after previously serving as an aide to President Bill Clinton.”

““Tarullo is very intent on fixing what in his views are flaws in the supervisory process,” said Deborah Bailey, managing director at Deloitte LLP in New York and a former deputy director in the supervision and regulation division at the Fed. “The Fed was given more explicit authority under Dodd- Frank to oversee financially systemic institutions, and, as a result, they are on the hook” if another large bank fails.”

***

Read full story here

In the News
Share

MEDIA REQUESTS

For media inquiries, please contact us at
press@bettermarkets.org or 202-618-6433.

Contact Us

For media inquiries, please contact press@bettermarkets.org or 202-618-6433.

To sign up for our email newsletter, please visit this page.

Name(Required)
This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact press@bettermarkets.org or 202-618-6433.

Donate

Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today