large banking firms need to be stronger than those included in Basel III and the agreement on capital surcharges, but how to make them so,' said Mr. Tarullo, adding later that even with those measures in place it 'would leave more too-big-to-fail risk than I think is prudent.'" Tarullo recommended highe

hem so,' said Mr. Tarullo, adding later that even with those measures in place it 'would leave more too-big-to-fail risk than I think is prudent.'" Tarullo recommended higher capital requirements and long-term debt requirements for systemically risky financial institutions. Last week, Governor of Gover

would have to step in to prevent their collapse and said more needs to be done to eliminate that risk." It's important to note exactly what Stein, Tarullo, and Bernanke are all saying. • Here's what they're not saying: Too-big-to-fail banks enjoy implicit subsidies and impose externalities on the res

nges to annual stress test process viewed as positive. Mr. Blinde noted that potential changes to the annual stress test process, as proposed by Gov. Tarullo in Sept., is a “real” positive, specifically as it reduces any variance between how the stressed risk weighted asset balance is calculated. This is l

ductivity & Unit Labor Costs @ 8:30am, Fed's Beige Book @ 2pm DOE crude oil inventories @ 10:30am Fed Speakers: Lockhart @ 8:15am (Ft Lauderdale), Tarullo testifies to Senate Banking Committee on Wall Street reforms @ 10am (DC), Williams (Bellevue, WA), Yellen @ 7pm (Boston) Conferences: Jefferies Glo

Open: AMWD, BTH, HYGS, NOOF Reporting Post-Close: AIRT Economic Data: May Employment Report @ 8:30am, ISM Non-Manufacturing Composite @ 10am Fed's Tarullo speaks on Regulating Financial Firms @ 12:30pm, Fed's Rosengren to speak at the Stanford Finance Forum @ 3:30pm (Stanford, CA) Conferences: Bernste