Fed's Bullard says largest banks may still be too big: CNBC

[WASHINGTON] New regulations have made the financial system safer but have also strengthened the market position of the largest banks and may discourage innovation, St. Louis Fed President James Bullard said on Thursday.

"What we have done is ensconce the biggest banks as if they are going to be around 50 or 100 years from now," Bullard said.

He said that his colleague, Minneapolis Fed President Neel Kashkari, had the "right idea" in arguing that the Fed needed to revisit the issue of breaking up the largest banks that may remain too big to fail.

REUTERS