WASHINGTON — Federal Reserve Gov. Daniel Tarullo on Monday said a slew of new regulations imposed on the biggest U.S. financial institutions should influence how banks make risky bets.

While prudential rules can reduce the types of risky activities that banks engage in, they can also, where permitted, "indirectly" influence corporate decision-making by requiring minimum capital requirements. The Dodd-Frank Act, meanwhile, required banks to maintain independent risk committees as well as added a number of measures to firms that pose a threat to financial stability.

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