Minneapolis Fed to explore resolution alternatives in TBTF initiative

Neel Kashkari discusses outcomes from this month’s symposium

Neel Kashkari
Minneapolis Fed's Neel Kashkari

The Federal Reserve Bank of Minneapolis will consider alternative resolution mechanisms in its quest for a solution to the "too-big-to-fail" problem, president Neel Kashkari said on April 18.

Kashkari introduced the initiative shortly after joining the Minneapolis Fed, arguing the largest US banks still posed a "significant, ongoing risk" to the economy. He initially put forward three options for consideration: breaking them up, substantially increasing capital requirements, and taxing leverage

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