Plosser warns US regulations could cause unnecessary bail-outs
Philadelphia Fed president says existing efforts to end too-big-to-fail may ‘come up short' and advocates a more rules-based approach; criticises Basel III risk weights
Charles Plosser, the Federal Reserve Bank of Philadelphia president, last week criticised US efforts to end the too-big-to-fail problem and advocated a more rules-based approach to bank resolution.
"Can we end too-big-to-fail? I think we can, but I believe the current efforts may come up short," he said.
The Dodd-Frank Act, under Title II, provides a framework for the Federal Deposit Insurance Corporation (FDIC) to act as a receiver and carry out the liquidation of failing banks, including
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