WASHINGTON — U.S. regulators have made significant progress in reaching agreements with their foreign counterparts on cross-border resolution schemes for big banks, but some experts argue they need a much more powerful tool at their disposal for those efforts to really work.

How countries cooperate to resolve globally active firms is one of the biggest questions facing resolution regimes created to ensure the end of "too big to fail." In the U.S., the Federal Deposit Insurance Corp. has signed memorandums of understanding with foreign jurisdictions and has also developed a wind-down strategy that is designed in part to avoid cross-border disputes.

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