Fed Takes on 'Too Big to Fail' (The Hill)

In a lengthy proposal published Tuesday, the Federal Reserve proposed a slew of new restrictions and requirements for large banks and other major financial institutions as it works to implement a big chunk of the Dodd-Frank financial reform law. The 173-page document is an attempt to prevent another financial meltdown during which the government took steps to bail out large companies whose failure would threaten our financial system. The Fed’s proposal calls for additional regulation for “systemically important financial institutions” to meet certain requirements on capital reserves and liquidity, as well as be subject to annual stress tests that will measure a company’s resilience.