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Fed's Tarullo: New big bank rule stricter on debt

Daniel Tarullo, member of the Federal Reserve Board of Governors.
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Daniel Tarullo, member of the Federal Reserve Board of Governors.

Federal Reserve Governor Dan Tarullo said the U.S. will have a stricter long-term debt rule than the international agreement, Dow Jones reported on Thursday.

He told the news service that the rule impacting big banks will be "a little more rigorous" on what kind of debt qualifies.

Although the rule is still being drafted, the newswire said the regulation would force banks to issue minimum amounts of debt in an effort to make bailouts less likely.

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