Federal Reserve Governor Daniel Tarullo is speaking today at the Yale School of Management Leaders Forum in New Haven, Connecticut. His speech is covering future regulation of foreign banking organizations. Tarullo noted that regulators around the world still continue to implement reforms designed to limit the incidence and severity of future crises. The largest issue he is addressing is that the regulation of the U.S. operations of large foreign banks has yet to be reformed.
Tarullo also said that regulators here in America only see a portion of worldwide activities of these banks. He said some risks are more closely tied to the specifically international character of certain global banks, both in America and in some other parts of the world.
The big issue is that Tarullo has said that the Board of the Federal Reserve is discussing these international regulations. He noted, “I anticipate that in the coming weeks we will complete our work and issue a notice of proposed rulemaking that will elaborate the basic approach I have foreshadowed.”
JON C. OGG