September 20, 2012 / 12:30 AM / 7 years ago

Fed's Fisher repeats call to break up big banks

Richard Fisher, president of the Federal Reserve Bank of Dallas, answers a question from the audience after delivering the 2009 Albert H. Gordon Lecture about the current financial crisis at the John F. Kennedy School of Government at Harvard University in Cambridge, Massachusetts February 23, 2009. REUTERS/Brian Snyder

NEW YORK (Reuters) - The financial system is “rigged” to benefit big banks, Dallas Federal Reserve Bank President Richard Fisher said on Wednesday, repeating his belief that the five largest U.S. banks should be broken up to protect the economy from another crisis.

Fisher, speaking at the Harvard Club of New York City, said big banks should not have a funding advantage over smaller, regional banks. He pointed, for example, to the interest that the Fed pays large banks for leaving their excess reserves at the U.S. central bank.

Reporting by Jonathan Spicer; Editing by Leslie Adler

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