• Contact
  • Feedback
Banking Day
  • News
  • Topics
    • All Topics
    • Briefs
    • Major Banks
    • Authorised deposit-taking institutions
    • Insurance, funds and super
    • Payments, mobile & wallets
    • Consumer lending
    • Mortgages
    • Business lending
    • Finance regulation
    • Debt capital markets
    • Ratings agencies
    • Equity capital markets
    • Professional services
    • Work & career
    • Foreign news
    • Other topics
  • Free Trial
  • Subscribe
  • Resources
    • Industry events
  • About us
    • About Banking Day
    • Advertise
    • Feedback
    • Contact Banking Day
  • Search
  • Login
  • My account
    • Account settings
    • User Admin
    • Logout

Login or request a free trial

US Fed talks banking break up

18 February 2016 5:15PM
America's biggest banks "are still too big to fail and continue to pose a significant, ongoing risk to our economy," Neel Kashkari, the new president of the US Federal Reserve Bank of Minneapolis, told a forum of the Brookings Institution this week. Kashkari described the threat of another crisis that might force the US Government to bail out large banks, as it did in 2008, as a rare instance of a clear and preventable problem.Kashkari outlined a number of potential options for restraining large banks, the New York Times reports.The first is forcing large banks to break into smaller pieces.Alternatively, the government could limit risk-taking by increasing the share of funding banks must raise in the form of capital rather than borrowed money, he said.Kashkari compared this to the safeguards imposed on nuclear power plants, where failure is regarded as unacceptable.

I'm a returning subscriber

*
Password reset *
Login

Request a free trial

  • Emailing you the news at 7am.
  • Covering core lending and funding issues, strategy, payments, regulation, risk management, IT, marketing and more.
  • Original news and summaries of major stories from other media – ditch your newspaper subscriptions.
  • Focused on banking and finance, saving you the time spent wading through newspapers and other services.
  • With reporting from former editors and senior writers from the AFR and The Australian.
  • Configured for your phone, laptop and PC.
Free trial Banking Day
Stay Ahead. Stay Informed.
Concise. Candid. Provocative.
Get the daily banking news that matters
Banking Day – Your trusted source for independent financial insights.
Subscribe Now

Consumer lending

  • Latitude, Harvey Norman liable for interest free GO card con

Copyright © WorkDay Media 2003-2025.

Banking Day is a WorkDay Media publication

WorkDay Media Unit Trust

  • Privacy policy
  • Terms of access and use