Published on Feb 16, 2016
A regional president of the US Federal Reserve System has said large banks pose a significant threat to the global financial system and they should be broken up. President of the Minneapolis Fed, Neel Kashkari, asked for -bolder, transformational options to reform the banking sector. He added that if the largest banks fail amid a stressed economic environment, the government will be forced to bail them out. Kashkari was a top Treasury official during the 2008 financial crisis and he was one of the architects of the government’s bailout of banks and carmakers at that time. He suggested that the largest banks could be broken down to smaller, less connected and less important entities. He said another option would be turning them to public utilities.