Federal Reserve Board Gov. Jeremy Stein said regulators should not abandon the current reform agenda designed to eliminate "too big to fail."

"While I agree we have a long way to go, I believe that the way to get there is not by abandoning the current reform agenda, but rather by sticking to its broad contours and ratcheting up its forcefulness on a number of dimensions," Stein said on Wednesday at a speech at the International Monetary Fund's annual Spring Meeting.

Stein disagreed with regulators who argue that the current path is not working in the debate over whether "too big to fail" has been eliminated under the Dodd-Frank Act.

Stein has ruled out critics suggestions of different approaches to tackle "too big to fail", including a size cap for individual banks or a return to Glass-Steagall.

"Rather, he noted there were two areas worth considering. The first is a gradual increase in the proposed capital surcharge applied to the largest globally active banks over time while the second is a requirement that holding companies maintain a substantial amount of senior debt to facilitate a resolution under Dodd-Frank," writes American Banker's Donna Borak.

For the full piece see "Regulators Must Stay the Course on 'Too Big to Fail': Fed's Stein" (may require subscription).