If regulators can’t fix the too-big-to-fail situation, “we will ultimately have to take more draconian measures and simply break up the largest banking organizations to eliminate the threat they pose to financial stability and economic growth,” Federal Reserve Bank of Dallas president and chief executive Richard Fisher said Monday.

“I trust regulators will rise to the challenges posed by the financial crisis and too big to fail, leaving a legacy of success and providing a practicable infrastructure for next-generation supervision and regulation,” he said.

While previous attempts failed, Fisher said those who will “revamp the regulatory framework” using Dodd-Frank need to avert “unintended consequences and time inconsistencies.”

Additionally, Fisher said, without effective regulation and ensuing financial stability, the Fed can’t meet its dual mandate “to foster maximum employment growth while constraining inflation and its alter ego, deflation.”

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