Fed Official Calls for ‘Significantly’ Tougher Bank Regulations, Sending Shares Plunging

A top Federal Reserve official has called for tougher regulations for regional banks, saying on Tuesday that the recently unveiled regulatory proposal for more stringent bank capital requirements don’t go far enough, with the S&P 500 banking index plunging to a one-month low.

Minneapolis Federal Reserve President Neel Kashkari speaks at the National Press Club in Washington, on Dec. 8, 2008. Chip Somodevilla/Getty Images

A top Federal Reserve official has called for tougher regulations for regional banks, saying on Aug. 15 that a recently unveiled regulatory proposal for more stringent bank capital requirements doesn’t go far enough.

The comment sent the S&P 500 banking index sinking to a one-month low.