Bernanke: More bank capital could help address "too-big-to-fail"
CHICAGO May 10 (Reuters) - U.S. Federal Reserve Chairman Ben Bernanke said on Friday that requiring big banks to hold more and higher quality capital could help address the "too-big-to-fail" problem in a way that stops short of demanding a break-up of the firms.
"Certainly one direction that we could go forward would be, in my view one constructive direction ... is through the capital direction," Bernanke told a conference sponsored by the Chicago Federal Reserve Bank. "Rather than arbitrarily saying that banks could be no larger than such and such a size, for example, I would argue that what we need to do is make sure that larger institutions have to have more and better quality capital."
- Malaysia air probe finds scant evidence of attack: sources |
- Malaysia probes passenger backgrounds for clues on missing flight |
- Confrontation in Ukraine as diplomacy stalls |
- Exclusive: Chinese raw materials also found on U.S. B-1 bomber, F-16 jets
- N.Korea using sophisticated means to avoid U.N. sanctions - U.N. report