Daniel Tarullo, Fed Board Member, Gives Boost For Bill To Break Up Wall Street Banks
WASHINGTON -- A top Federal Reserve official is having second thoughts about his 2009 declaration that breaking up the biggest Wall Street banks is "more a provocative idea than a proposal."
During a hearing last week before the Senate Banking Committee, Daniel Tarullo, who sits on the Board of Governors at the Federal Reserve, offered qualified support for a plan to break up the banks. When the same proposal had been circulating through Congress in the aftermath of the financial crisis, Tarullo and other Fed officials resisted the proposal, arguing that it was not a substantive reaction to Wall Street's collapse.
But last week, Tarullo told Sen. Sherrod Brown (D-Ohio), who had proposed the plan, that he had changed his mind.
"The ... example embodied in your legislation," Tarullo said. "Speaking personally here, that's the problem we need to address."