Fed's Tarullo says splitting up large banks is not answer

11/10/2009 | Bloomberg

As lawmakers discuss proposals that would allow the government to split up large financial institutions, Federal Reserve Governor Daniel Tarullo said doing so would not prevent firms from being too big to fail. "Some very large institutions have in the past encountered serious difficulties through risky lending alone," Tarullo said. He cited Bear Stearns and Lehman Brothers as examples of large firms without commercial-banking operations that posed a systemic threat.

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