New rules do not go into effect until 2018.  The real question is, is this the answer for banks that are too big too fail.  They are still too big.  Some economists think that capital requirements mask the real problem.  Anat Admati’s “The Bankers’ New Clothes” is out in paper, and makes another argument.

Janet Yellin. chairman of the Federal Reserve says,  “The financial crisis showed that some financial companies had grown so large, leveraged and interconnected that their failure could pose a threat to overall financial stability. Today’s action is another step in the Federal Reserve’s efforts to address those risks.”