(Bloomberg) -- The former U.S. Treasury official who led the2008 bailout program for the nation’s biggest banks says in his newrole at the Federal Reserve that Congress andregulators should consider breaking them up to protect thefinancial system from another crisis.
Federal Reserve Bank of Minneapolis President Neel Kashkari,speaking Tuesday in Washington, said his regional Fed bank willstudy ways to toughen U.S. banking laws to prevent anotherfinancial crisis.
Regulators should consider options including breaking up thenation’s largest financial institutions, loading them up with “somuch capital that they virtually can’t fail” and taxing leverage tomake the system safer, he said. Tougher oversight will require newlegislation, he added.
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