The best way to address institutions that are "too big to fail" is to make them smaller and provide government protection for only the "utility" aspects of a bank's business, Mervyn King, the governor of the Bank of England said Tuesday.

His comments differ from those of American regulators, who are more focused on the capital held by large institutions, and came as Federal Reserve Board Gov. Daniel Tarullo is scheduled to address the "too big to fail" problem in a speech Wednesday.

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