Flash: US and Europe on too big to fail policies – Brown Brothers Harriman

FXstreet.com (London) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman said that when it comes to addressing financial institutions that are regarded as systemically important and too big too fail, the US and Europe seem to have two fundamentally different approaches.

He explains that several European countries seem more intent on limiting the size of financial institutions. However, in the US, he explains that Bernanke and Yellen want to force such institutions to hold greater capital reserves, adding that Yellen was open to a sliding scale. He went onto to say that Yellen, who most see as Bernanke’s likely successor and like Bernanke previously, argued against restricting the size of the financial institutions and reiterated the Federal Reserve’s stance yesterday.