Fed's Tarullo uneasy on foreign banks' capital

NEW HAVEN, Connecticut (Reuters) - U.S. regulators cannot be "completely reassured" in the capital levels of foreign banks, a top Federal Reserve official said on Wednesday, bolstering his case for new capital and liquidity rules of the U.S. branches of those banks.

Fed Governor Daniel Tarullo said the uncertainty was a vulnerability to the U.S. financial system. He added that the Fed is "entering the home stretch" of finalizing rules he proposed in a speech here earlier on Wednesday.