Minneapolis Fed says largest banks still ‘too big to fail’

WASHINGTON (Reuters) – The Federal Reserve Bank of Minneapolis on Wednesday called for U.S. regulators to raise capital requirements for the largest U.S. banks, saying they are still ‘too big to fail’ despite a slew of reforms introduced following the 2008 financial crisis.

The academic study estimates there is still a 67 percent chance of a tax-payer funded bail out over the next 100 years and that common equity requirements for banks with assets exceeding $250 billion should be “dramatically” increased.

The study, which was two years in the making, comes as the administration of Republican President Donald Trump is looking to rollback many post-crisis reforms which he says have stifled lending and economic growth.

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