Federal Reserve Bank of Boston President Eric Rosengren said on Thursday that progress has been made on reducing risks from "too big to fail" financial institutions, according to media reports. In prepared remarks for a speech given in Cape Town, South Africa, Rosengren said there had been "significant progress" which should reduce the "the possibility that taxpayers in the United States would need to bail out" large financial companies in times of stress. "Too big to fail" institutions are companies, such as Lehman Brothers, considered systemically important because their failure could threaten the entire financial system. Rosengren also said he backs tougher stress tests for those institutions, including higher capital requirements, according to Reuters. The Boston Fed President didn't comment on monetary policy.
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