Scope For More Capital at Banks, Ben Bernanke Says
Federal Reserve Chairman Ben Bernanke on Thursday said additional steps may yet be taken to rein in too-big-to-fail banks, if regulators determine that recent reforms have not sufficiently controlled risks.
Bernanke continued his two-day semi-annual testimony before Congress on Thursday, this time appearing before the Senate Banking Committee.
In an exchange with Massachusetts Senator Elizabeth Warren on too-big-to-fail, the Fed chairman said regulators had taken steps to boost the safety of the biggest banks as required under the Dodd-Frank bank reform legislation, finalizing Basel III Capital rules that boosted capital ratios for the biggest banks and conducting annual stress tests that ensured banks have sufficient capital to withstand periods of economic stress.
He also said regulators were working to complete the implementation of the Volcker rule, which would prohibit banks from trading with their own capital.