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Fed’s Tarullo Says Efforts Needed to Curb Too-Big-to-Fail Risk  

February 7, 2014

Federal Reserve Governor Daniel Tarullo said more efforts are needed to end the perception that the biggest banks are “too big to fail” and to reduce risks that could spread rapidly through the financial system.

The central bank’s stress tests of the largest banks will “evolve further over time” as challenges to the banking industry shift, Tarullo said in remarks prepared for testimony today to the Senate Banking Committee and obtained by Bloomberg News.

In this year’s tests, lenders including JPMorgan Chase & Co. and Citigroup Inc. will have to show they can survive the demise of a trading partner or a plunge in value of high-risk business loans.

Read more: Bloomberg


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