Federal Reserve Governor Daniel Tarullo Delivers Policy Address at Yale SOM
Federal Reserve Governor Daniel Tarullo used a visit to Yale SOM on November 28 to outline potential new policies imposing tighter restrictions on foreign banks doing business in the United States.
Speaking at an event presented by the Yale SOM Leaders Forum lecture series and Yale Law School, Tarullo described the potential stricter capital and liquidity rules, which would require foreign banks to follow the same standards as U.S. institutions. Tarullo said such changes would call for a uniform set of regulations that would apply to all foreign banks, as opposed to firm-by-firm rules that have been used.
Following the financial crisis of 2008, Tarullo said, the Dodd-Frank Act called on the Fed to write tougher capital rules for all banks doing business in the United States, including foreign banks. Foreign banks without sufficient assets to cover their losses added to the crisis in the U.S. "The crisis revealed the resulting risks to U.S. stability," Tarullo said.
Keeton Little '14 attended the talk. "I learned a lot about how much consideration the Fed puts into regulatory decisions like this," he said.