Credit-rating companies Standard & Poor's and Moody's say they anticipate the U.S. government would rescue large banks in a future crisis. Both cut the major banks' debt ratings by one level late last year, while retaining them as investment grade credits.

Last month, 15 of the 19 largest U.S. financial institutions passed a Fed "stress test" designed to measure their ability to withstand a deep recession.

Richard Spillenkothen, the Fed's director of banking supervision and regulation from 1991 to 2006, said regulators are moving in the right direction.

"We've made progress. I don't think we've totally resolved it," said Spillenkothen. "The proof will be in the next crisis."

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