Federal Reserve Board Governor Daniel Tarullo worried about wholesale funding…

Please let him know the liability side of banking is not the place for market discipline, thanks:

Fed’s Tarullo says focused on big bank reliance on wholesale funding

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.

This entry was posted in Banking, Fed. Bookmark the permalink.

Comments are closed.