Fed official calls for massive capital increases for banks

A Federal Reserve official on Wednesday outlined a plan for ending the problem of “too-big-to-fail” banks by massively raising their capital requirements and imposing taxes on debt at non-banks, a strategy that is not likely to become law now but could provide a blueprint for reforming Wall Street in the future.

Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, unveiled the highly-anticipated plan at an event in New York City, said that if the plan “prevents one financial crisis, it will have paid for itself multiple times over.”