LONDON -- "Living wills," which would require systemically-important banks to detail how they would be wound down in the event of trouble, could play a key role in addressing future banking crises, Boston Federal Reserve Bank President Eric Rosengren said in a speech in London Tuesday. A living will for a global bank, however, would also require an agreement among regulators in different countries that such a plan would be feasible, he said. Rosengren was skeptical about calls to significantly narrow the activities of banks and to ban outright some high-risk activities, such as proprietary trading. Instead, key institutions should be required to build up larger reserves and capital during good times, he said.

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