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Fed to soon propose debt rule for bank emergency plans: Tarullo

A tour bus passes the United States Federal Reserve Board building (rear) in Washington October 28, 2014. REUTERS/Gary Cameron/Files

WASHINGTON (Reuters) - The Federal Reserve is expected to issue a new rule in the coming months involving a long-term debt requirement for banks' emergency plans, a top Fed official said on Thursday.

The central bank is also willing to consider raising certain thresholds for financial industry regulations put in place after the 2010 Wall Street reform law, Fed Governor Daniel Tarullo said in prepared remarks.

Tarullo, the Fed's top bank regulator, repeated his view that the threshold for the law's Volcker rule and its incentive compensation restrictions could be increased to firms with $10 billion or more in assets, from $1 billion now.

Tarullo was addressing the Senate Banking Committee on Thursday, which called a hearing on bank regulation.

Tarullo also repeated his view that the $50 billion threshold that subjects financial institutions to certain regulations, including stress-testing, also was worth re-visiting, as long as it does "not remove the discretion of the banking agencies to require additional measures - including such things as more capital or liquidity," Tarullo said in his remarks.

(Reporting by Michael Flaherty; Editing by Andrea Ricci)