Federal Reserve Board Gov. Daniel Tarullo, by advocating caps on bank size, fueled criticism of the Dodd-Frank Act’s effectiveness in ending the phenomenon of too-big-to-fail financial institutions.
"The Fed official's suggestion of a size limitation is potentially significant because it acknowledges that policymakers must do more to deal with the issue," writes American Banker's Rob Blackwell.
Tarullo also raised questions about other aspects of Dodd-Frank. "Dodd-Frank creates a legal and institutional framework within which financial stability regulation is to be developed but, with a couple of notable exceptions; it does not delineate the steps that should actually be taken to promote financial stability," Tarullo said in a speech at the University of Pennsylvania Law School.
For the full piece see "
