Current attempts to solve the too big to fail problem "may not be sufficient," according to Federal Reserve Bank of Philadelphia President and Chief Executive Officer Charles I. Plosser, who suggests "a simpler approach to capital requirements and a more rule-like resolution process."

"We should seek to increase capital buffers for financial institutions and to simplify capital regulation by reducing or eliminating the ever-increasing complexity of risk-weighted capital calculations," Plosser told an audience at Boston College Thursday, according to prepared text released by the Fed. "Furthermore, if we are to end discretionary bailouts and the associated moral hazard problems that they create, we should seek more rule-like methods to resolve failing firms, such as a new Chapter 14 bankruptcy mechanism."

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