Federal Reserve Chairman Ben Bernanke said on Monday a regulatory reform bill that Congress is finalizing would likely address the problem of financial firms being too big to fail.
The acid test of the reform will be, will it control 'too big to fail?' Bernanke said in remarks to the Woodrow Wilson Center in Washington.
Bernanke said there were three strong measures in the bill to deal with that problem: tougher capital rules; resolution authority to safely close failing firms; and 'living wills' that require companies to plan for their own unwinding.
When asked whether he thought the bill was more helpful than harmful, Bernanke replied, Oh yes, I do.
(Reporting by Mark Felsenthal, Pedro da Costa and Emily Kaiser; Editing by Gary Hill)