William Dudley, the president of the New York Federal Reserve, on Monday said the uneven progress on reforming bank regulation and supervision across the different jurisdictions risked exposing some taxpayers to huge tail risks.

At the Institute of Regulation & Risk North Asia in Tokyo, Japan, Dudley said: "In some cases, the supervisory authorities have been quite forceful in making banks domiciled in their countries raise capital. In other cases, the response has been less aggressive. The