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Fed's bully pulpit has significant muscle

If it chooses to, the Federal Reserve can force the break-up of US banks that fail to end misdeeds and financial scandals
Friday, October 24, 2014 - 05:50

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Federal Reserve Bank of New York's president William Dudley warned this week that big banks would be 'dramatically downsized and simplified' if bad behaviour persisted, and he proposed changing the way executives are compensated to discourage excessive risk-taking.

Washington

THE Federal Reserve has plenty of power to follow through on regulatory threats made to top bank executives aimed at curbing misbehaviour on Wall Street, even if it can't order firms to break up.

"The Fed has a powerful bully pulpit that should not be underestimated,"

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