Fed's Kashkari: U.S. Needs to Lead on Too-Big-to-Fail

The transcript discusses the balance between financial safety and economic growth, highlighting Neil Kashkari's plan to address the 'too big to fail' issue by increasing equity capital for large banks. The conversation touches on the potential impact of financial crises, the challenges of international banking regulations, and the dynamics of market regulation. Kashkari argues for higher capital requirements to ensure bank safety and reduce taxpayer risk, while acknowledging the potential trade-offs with economic growth.

What is the significance of higher capital requirements for banks according to the discussion?

How does the text describe the reaction of big banks to proposed regulations?

What are the implications of tighter regulations on banks for market behavior as discussed in the text?