Posted by WARREN MOSLER on April 18th, 2013
Please let him know the liability side of banking is not the place for market discipline, thanks:
April 18 (Reuters) —
WASHINGTON – Federal Reserve Board Governor Daniel Tarullo said on Thursday that U.S. banks were in better shape now than prior to the financial crisis, but he remained worried by the vulnerability of the very big firms to reliance on fickle market liquidity.
“My concern in particular is the intersection of ‘too big to fail’ with very large institutions, with very large wholesale funding markets that are subject to runs, and eventually then to liquidity freezes,” he told Bloomberg Television in an interview.