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
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," Mike Mayo, an analyst at CLSA Ltd. in New York, said. "It has the authority to approve or disapprove the ability of banks to return capital to shareholders."
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