Kashkari: US banks still too-big-to-fail

Author: Edward Price | Published: 27 Jun 2016

Federal Reserve Bank of Minneapolis president Neel Kashkari has said that large US banks remain too-big-to-fail (TBTF), while also slamming the US total loss absorbing capacity (TLAC) plan. Counsel, however, say there’s been progress on TBTF and that it’s too early to fully assess TLAC.

Kashkari was speaking at the third Ending Too Big to Fail symposium at the Peterson Institute in Washington DC on June 20. In his remarks, he stated current reform efforts on TBTF are heading in the right direction, as evidenced by higher capital and liquidity requirements. But Kashkari also said he did not think such measures go far enough.

"As a result, we are working on a plan to end TBTF," Kashkari said.

Neel Kashkari, Minneapolis Fed In his remarks, Kashkari reiterated his now infamous call for significant US bank structural reform. He insisted that US banks remain TBTF, indicated he thinks the political...