Fed chair nominee Powell says no bank is 'too big to fail'

The collapse of US investment bank Lehman Brothers in 2008 sparked chaos across the global financial system giving rise to the concept of 'too big to fail' institutions

Improvements in US bank regulation and supervision since the 2007-09 financial crisis have eliminated the problem of “too-big-to-fail” banks, Federal Reserve chair nominee Jerome Powell (pictured) told the Senate Banking Committee on Tuesday, in comments that may surprise some bank analysts and regulatory experts.

“Generally speaking I think the financial system is quite strong,” Powell said in his confirmation hearing. Asked if there are any US banks that are still too big to fail in America, he responded, “I would say no to that.”

The collapse of US investment bank Lehman Brothers in 2008 sparked chaos across the global financial system giving