Stressing the importance of preserving "financial stability" to maintain economic prosperity, New York Federal Reserve Bank President William Dudley Thursday said failures of the biggest financial firms must be prevented, not just dealt with after they happen.

Dudley said so-called "too-big-to-fail" banks or "systemically important financial institutions" (SIFIs), as regulators call them, pose multiple problems, Dudley said in remarks prepared for delivery to the Global Economic Policy Forum in New York.

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